Questerre Energy Corporation

Questerre Energy Corporation

August 10, 2005 02:05 ET

Questerre Energy Corporation: Operations to Commence at Beaver River Field in September

CALGARY, ALBERTA--(CCNMatthews - Aug. 10, 2005) - Questerre Energy Corporation (TSX:QEC) ("Questerre" or the "Company") announced today that it has received regulatory approval for the re-entry program at the Beaver River Field in British Columbia (the "Field").

Questerre's farm-in partner, Ampac Petroleum Inc. ("Ampac"), proposes to commence the first phase of the program this September. This phase will involve the re-entry, perforation and testing of two existing wells. Two additional re-entries are scheduled for this winter with plans for fracture stimulation if required. All four wells will target production from the shallow Mattson sands. Ampac will fund 100% of the costs of this initial program to earn a 50% interest in the four wells for the Mattson. Questerre will retain the remaining 50% interest.

Ampac has entered into an agreement to transfer its rights under the farm-in agreement with Questerre to Transeuro Energy Corp. ("Transeuro") (TSX:TSU). Transeuro recently announced that it has appointed High Arctic Energy Services LLC ("High Arctic"), a wholly owned subsidiary of High Arctic Energy Trust (TSX:HWO.UN), as its integrated project manager for all its projects, including the program at the Field. High Arctic proposes to mobilize the requisite equipment to the Field at the end of August and commence operations in early September.

Michael Binnion, President and Chief Executive Officer, commented, "I am very pleased that we were able to license these wells this summer and that our partner will be able to commence operations this fall. These wells tested natural gas at rates between 80 boe to 2,000 boe per day, but were never produced. With success, we expect to see production from these wells in early 2006."

High Arctic is engaged in the global oilfield services business by providing underbalanced drilling and production services, equipment, design, development, technical support and training to the Canadian and international oil and gas industry. Jed Wood, President, Chief Executive Officer and Chairman of High Arctic Energy Trust is also a director of Questerre.

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, 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.

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