Questerre Energy Corporation

Questerre Energy Corporation

August 24, 2007 00:15 ET

Questerre Energy Corporation: Nahanni Well Spuds at Beaver River Field

CALGARY, ALBERTA--(Marketwire - Aug. 24, 2007) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) and Transeuro Energy Corp. (TSX VENTURE:TSU) ("Transeuro") are pleased to announce the spud of the A-8 Nahanni well at the Beaver River Field (the "Field").

The well will be drilled by Precision Drilling rig #228 to a measured depth of 4113m and a vertical depth of 3880m. The primary target is a structurally high, undrilled Nahanni fault block identified on the reprocessed 3-D seismic survey. The well will also test three other prospective horizons including the Mattson, Mississippian carbonate and Devonian shales. Drilling is expected to take approximately 120 days with completion and testing scheduled for the first quarter of 2008.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We are very excited about this Nahanni well. The well will test our theory of compartmentalization for the Nahanni that could setup up to 10 additional drilling locations. I look forward to the completion of drilling operations this year and the testing in early 2008."

The Nahanni is a highly productive formation at the Field and in the surrounding area, including the discovered Pointed Mountain, Kotaneelee and Chevron Liard fields. Within a one-kilometer radius of the A-8 well, the original A-2 and A-5 wells had cumulative production of 39 Bcf and 50.1 Bcf respectively from the Nahanni. Daily production from the A-2 well peaked at just over 54 mmcf/d (9,000 boe/d) and maximum production from the A-5 well was 57 mmcf/d (9,500 boe/d). Nahanni wells at the Field have produced at rates between 12 mmcf/d (2,000 boe/d) to over 50 mmcf/d (8,300 boe/d) and recovered, on average, approximately 30 Bcf per well.

Several of the wells had Absolute Open Flow ("AOF") tests of approximately 100 mmcf/d (16,600 boe/d). Questerre's independent reservoir engineers have attributed gross possible reserves of 120 Bcf to the Nahanni formation at the Field and a remaining gross contingent resource of 540 Bcf.

Contingent resources are defined in the COGE Handbook as those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations that are not currently economic. Recovery will be contingent upon confirmation that the Nahanni has been compartmentalized and the achievement of a 50% recovery of the discovered resource.

Questerre Energy Corporation 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.

Contact Information