Questerre Energy Corporation

Questerre Energy Corporation

September 20, 2005 00:15 ET

Questerre Energy Corporation: Work Program Commences at Beaver River Field

CALGARY, ALBERTA--(CCNMatthews - Sept. 20, 2005) - Questerre Energy Corporation (TSX:QEC) ("Questerre" or the "Company") announced today that operations are underway at the Beaver River Field in British Columbia.

The workover of the A-6 well, the first well in a four- well program, began this weekend. The operation will involve the re-entry and re-completion for potential production from the shallow Mattson sands. One additional well is scheduled for this fall with two more wells planned for this winter. It is expected that re-completed wells will be stimulated and tested in early 2006.

Questerre's joint venture partner will fund 100% of the costs of this initial program to earn a 50% interest in the Mattson zone in the four wells. Questerre will retain the remaining 50% interest.

Questerre also announced that it has closed its previously reported $8.2 million private placement. The placement consisted of the issuance of 9,987,690 Common Shares at $0.82 per Common Share. There are currently 109,864,594 Common Shares issued and outstanding. Questerre proposes to utilize the proceeds from this offering to fund working capital and potential acquisitions. The Company's existing working capital includes over $12 million in cash and equivalents.

Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration for and development, production and acquisition of large-scale exploration and development 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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