Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

October 12, 2006 00:15 ET

Questerre Finalizes Payout on Insurance Claim

CALGARY, ALBERTA--(CCNMatthews - Oct. 12, 2006) - Questerre Energy Corporation ("Questerre" or the "Company")(TSX:QEC)(OSE:QEC) announced that it has received $1.05 million as full and final settlement of the insurance claim for damages sustained in the previously reported fire at the Beaver River Field in June 2005.

The claim relates to the costs incurred in replacing the staff quarters, workshop and equipment damaged in the fire. The amount is net of a $25,000 deductible, representing the Company's only unrecoverable costs for this incident.

Michael Binnion, President and Chief Executive Officer, commented, "I am pleased that we have received the maximum amount of our coverage under this claim. Our field operators worked diligently last summer to ensure the reconstruction was completed quickly and cost-effectively. The new modular living quarters and shop facilities provide an excellent scalable base to support the on-going development of the Besa/River Mattson horizon at the Field."

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.

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