Questerre Energy Corporation

Questerre Energy Corporation

March 01, 2005 09:15 ET

Questerre Updates Activities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUESTERRE ENERGY CORPORATION

TSX SYMBOL: QEC

MARCH 1, 2005 - 09:15 ET

Questerre Updates Activities

CALGARY, ALBERTA--(CCNMatthews - March 1, 2005) - Questerre Energy
Corporation (TSX:QEC) ("Questerre" or the "Company") reported today on
the status of its wells in the Parkland and Vulcan areas of Alberta.

Drilling operations on these two wells were finalized in early January.
Completion operations scheduled for February were delayed due to rig
availability and corporate developments with the operator. The Company
anticipates these wells will be completed and production tested this
month. Subject to successful testing, the wells will be tied-in and
placed on production during the second quarter of 2005.

Questerre also reported on the status of drilling operations on the
Simonette well in west central Alberta. The well was spud on February
11, 2005 and operations are proceeding satisfactorily. The farm-in
partner has confirmed that it intends to maintain its before payout
working interest at 26.667% in the well and surrounding acreage,
convertible to a 20% working interest after payout. Questerre has now
received $1.16 million from its farm-in partner representing its 26.667%
share of drilling costs for the well.

Questerre currently holds a before payout working interest of 23.333% in
the well and surrounding acreage convertible to a 30% working interest
after payout. Questerre will also receive a 5% gross overriding royalty
payable by the farm-in partner until payout.

Michael Binnion, President and Chief Executive Officer, commented,
"Despite delays in the completion, we remain confident that we will see
production from Parkland and Vulcan by the second quarter as originally
planned. We are also very excited about the prospects for the Simonette
well. With success, our 30% after payout working interest in this
project could exponentially increase shareholder value. More
importantly, with the support of two major independents as partners,
Questerre's downside is well protected. Our objective for this year is
to continue to develop additional opportunities to substantially
increase shareholder value."

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Questerre Energy Corporation
    Michael R. Binnion
    President
    (403) 777-1185
    (403) 777-1578 (FAX)
    Email: info@questerre.com
    Web: www.questerre.com