Questerre Energy Corporation

Questerre Energy Corporation

June 23, 2008 01:00 ET

Questerre Tests 1,000 boe/d Vulcan Light Oil Well

CALGARY, ALBERTA--(Marketwire - June 23, 2008) -


Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) reported today on the initial test results from its first stage-fractured horizontal well in the Vulcan oil pool in Southern Alberta. Questerre and Compton Petroleum Corporation ("Compton") each have a 50% interest in this well and the oil pool.

The Questerre operated well was drilled to a vertical depth of approximately 1900m with a 500m horizontal leg in the target Mannville Formation. The well was subsequently stimulated with a four-stage selective frac and free-flowed to surface light oil and associated natural gas at rates in excess of 1,000 boe/d. During a subsequent 5-day test, with capacity constraints, the well flowed to surface on a 11/2-inch choke at rates of 750 bbl/d with associated gas and less than a 10% water cut.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "This well exceeded our expectations and is another example of our success in applying selective frac'ing technology. The initial results from this well are 3 to 4 times the rate from the adjacent 16-20 vertical fractured well. We look forward to follow-on development of this pool."

Questerre expects the well will be placed on production with an initial regulatory restricted rate of 315 bbl/d plus gas during the New Oil Well Production Period ("NOWPP") until the Company obtains Good Production Practice ("GPP") status to commence full production from the oil pool.

Field operations are already underway to tie in the well to the existing gathering system and battery. Questerre expects the well to be placed on production in July. Questerre and Compton have identified two additional infill locations and are in the process of applying for licenses to drill the next well, which is anticipated to be operated by Compton.

Questerre 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.

Barrel of oil equivalent ("boe") 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 and 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.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

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