Questerre Energy Corporation
TSX : QEC

Questerre Energy Corporation

January 18, 2006 00:15 ET

Questerre Updates Alberta Operations

CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2006) - Questerre Energy Corporation (TSX:QEC) ("Questerre" or the "Company") is pleased to report on recent developments in its core areas in Alberta.

Vulcan, Southern Alberta

The construction of a 5.5 km gas pipeline in Vulcan was completed at year-end. The discovery well, drilled in March 2005, is currently on production. Questerre expects to report stabilized production rates from this well in early February.

Questerre plans to drill three development wells for this new Mannville pool during the first quarter of 2006. Drilling of the first development well is expected to commence this week. Subject to the results of this drilling program and the receipt of "Good Production Practice" status from the Alberta Energy and Utilities Board, Questerre anticipates the first delineation well, drilled in September 2005, will be placed on production.

Questerre will also drill two more wells during the quarter to test for Horseshoe Canyon coal bed methane ("CBM") potential. The Company reported it recently acquired one additional section (0.5 net) in the Vulcan area, bringing its total holdings in the area to 14 sections (6.5 net).

Westlock, Central Alberta

Questerre announced that its 100% interest well in Westlock was placed on production earlier this month. This follows the construction of a gas pipeline to tie-in the well. Questerre expects to report stabilized production rates from this well in early February.

The Company recently expanded its landholdings in Westlock to bring its total holdings in the area to 10 sections (6.78 net sections). Questerre has identified additional drilling locations on this acreage and expects to participate in a total of three wells in Westlock during 2006.

Michael Binnion, President and Chief Executive Officer, commented, "I am pleased with the progress made on our portfolio of assets in Alberta. With current production of over 250 boe/d and more than 500 boe/d of production behind pipe or shut-in, we have a good start on our year-end target for 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.

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