Questerre Secures Final Contracts for Guaranteed Market Access

CALGARY, ALBERTA--(Marketwired - Dec. 23, 2013) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TO UNITED STATES NEWSWIRE SERVICES OR UNITED STATES PERSONS

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) is pleased to announce that is has concluded the final agreements for market access for its natural gas and liquids production in the Kakwa-Resthaven area of west central Alberta.

Michael Binnion, President and Chief Executive Officer, commented, "These contracts are the cornerstone of our wellhead to burner tip strategy. They include firm transportation for our natural gas and liquids, including condensate. We also have secured fractionating capacity and long-term marketing contracts for the liquids. These match our commitment to firm processing capacity for 20 MMcf/d of natural gas and liquids that is expected to commence in early to mid-2015."

He added, "These take or pay contracts leverage third party capital, reducing the capital we would otherwise require to finance the necessary investment in infrastructure. With these agreements, we now have the infrastructure in place to ramp up our natural gas production to a minimum of 20 MMcf/d in the latter part of 2015. Coupled with the liquids rates from our existing wells, we expect this production could be over 5,000 boe/d net to Questerre."

Through its participation in a third party pipeline expansion, the Company has entered into an agreement for firm transportation of natural gas liquids including condensate from the Kakwa-Resthaven area to Edmonton. The committed volumes under this contract are approximately 3,000 barrels of liquids per day. Questerre also concluded an agreement with a third party for fractionating and marketing for the natural gas liquids associated with its production in the Kakwa-Resthaven area. Lastly, the Company also concluded an agreement with a major pipeline company for firm transportation capacity for 19 MMcf/d of sales gas. These contracts are subject to receipt of all requisite regulatory and environmental approvals.

Questerre Energy Corporation is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. The Company has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan. It is bringing on production from its lands in the heart of the high-liquids Montney shale fairway. It is a leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec. In conjunction with a supermajor, it is at the leading edge of commercializing a proven process to unlock the massive resource potential of oil shale.

Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment and society. We are committed to being transparent and are respectful that the public must be part of making the important choices for our energy future.

This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the in-service date of the Company's take or pay contracts, the potential to ramp up the Company's natural gas and liquids production to over 5,000 boe/d net to Questerre, and the Company's expectations about the liquids rates associated with its existing wells. Although Questerre believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to Questerre. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Questerre does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

This news release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to or for the account or benefit of US persons (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")), absent registration or an exemption from registration. The securities offered have not been and will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not be offered for sale in the United States, except in transactions exempt from registration under the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Barrel of oil equivalent ("boe") and billion cubic feet equivalent ("Bcfe") 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 of oil and the conversion ratio of one barrel to six thousand cubic feet 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.