Questerre Energy Corporation

Questerre Energy Corporation

August 15, 2005 02:15 ET

Questerre to Develop Vulcan Discovery in Southern Alberta

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - Questerre Energy Corporation (TSX:QEC) ("Questerre" or the "Company") Questerre announced today that it will participate for a 50% interest in a minimum three-well drilling program in the Vulcan area of southern Alberta.

The three initial wells will delineate the new Mannville pool discovery made earlier this summer with its partner Stylus Energy Inc. (TSX:STY). The discovery well that initially tested at 177 boe per day was placed on a long-term production test early in the third quarter. During 87 hours of testing, the well tested oil at 159 barrels per day and gas at 173 boe per day for a combined average rate of 332 boe per day through chokes varying from 0.25 inch to 0.5 inch. It is currently shut in and will resume production in September once a gas pipeline is constructed. Additional facilities under construction include a multi-well battery.

Based on the initial test results and re-processing of a 3-D seismic survey, Questerre and Stylus have identified eight potential follow-up locations on their joint acreage in Vulcan. A drilling rig has been contracted through break-up for this initial three-well program with the first well scheduled to spud this month. Future wells will be based on the results from this initial program and the long-term production test results.

Michael Binnion, President and Chief Executive Officer, commented, "This new pool is a significant discovery for Questerre. We expect to have at least four wells on production by year end with room for further development in 2006."

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, 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