Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

October 14, 2008 00:15 ET

Questerre Energy Corporation : Liard Basin Shale Well Flows at 10 mmcf/d

CALGARY, ALBERTA--(Marketwire - Oct. 14, 2008) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) and Transeuro Energy Corp. ("Transeuro") announced results from their Liard shale gas program at the Beaver River Field in British Columbia.

The program consisted of a series of mini-fracs and high pressure acid stimulations on the A-5 well. The main objective of the program was to evaluate rock properties of the Liard shales and identify prospective intervals for a possible future fracture stimulation program.

After a minor stimulation, the A-5 well flowed sweet dry natural gas at a stabilized rate of 10 mmcf/d (1,667 boe/d) over a three day test with a wellhead pressure of 3000 psi. The well is being tied-in to the local gathering system to commence a long-term production test. Production is expected to begin before the end of October pending regulatory approval.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "While too early to evaluate the full contribution from the Liard shales, these initial results are well above our expectations. With over 30 square miles of prospective acreage, existing infrastructure and takeaway capacity, this remains an exciting opportunity."

Questerre intends to place the well on production at restricted rates. The high flowing pressure associated with this well will likely reduce production from the lower pressure A-2 and A-7 wells limiting overall production gains at the field.

The tested interval in A-5 is brittle and highly dolomitic at the top of a thick sequence of organic rich shale. The appraisal strategy is to target the more brittle rock intervals that have higher carbonate and silica content expected to respond favourably to stimulation. The brittle rocks contain free gas and may serve as a pathway for the shale gas to enter the well. The long-term production test is intended to establish how much, if any, contribution will come from the shales.

A-5 is the third well to be put on production from the shale/siltstone intervals at Beaver River. These intervals are collectively more than 2000m thick and, for classification purposes, have been separated into three major intervals. Discovered resource is estimated at over 1 Tcf per square mile based on independent analysis by Netherland, Sewell & Associates, Inc. The two other producing wells, A-7 and A-2, produce from the upper and middle intervals respectively.

Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

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