Questerre Energy Corporation

Questerre Energy Corporation

October 06, 2005 00:15 ET

Questerre Executes Farm-In Agreement with Talisman

CALGARY, ALBERTA--(CCNMatthews - Oct. 6, 2005) - Questerre Energy Corporation (TSX:QEC) ("Questerre" or the "Company") is pleased to announce that it has executed a farm-in agreement with Talisman Energy Canada ("Talisman") for the Company's acreage in the St. Lawrence Lowlands, Quebec.

Talisman will commence a 2-D seismic program at its sole cost over the acreage prior to December 31, 2005, subject to receipt of all regulatory approvals. Based on the results of the seismic program, it has the right to drill up to four test wells to earn an interest in over 700,000 acres of land. Talisman will fund up to 100% of the drilling program. Questerre and its minority partners may participate for up to a 15% interest. Questerre retains a 10% carried interest and a 5% gross overriding royalty ("GORR") on production from Talisman.

Questerre's acreage is prospective for natural gas through several different play types. The primary play developed by the Company over these lands is the Trenton Black River.

Michael Binnion, President and Chief Executive Officer, commented, "We are thrilled to have Talisman as our partner in the Lowlands. Their experience with the Trenton Black River play will be a tremendous asset to us. I look forward to the beginning of the seismic work program this fall with the decision on drilling to be determined in 2006."

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.

Contact Information