Stylus & Questerre Find Gas at Their Mannville Prospect

Stylus Energy and Questerre Energy report the preliminary results of the delineation drilling on their Mannville new pool discovery at Vulcan, Alberta. Stylus (Operator) and Questerre each have a 50% working interest in the two delineation wells drilled to date.

The first delineation well, located at 14-28-15-25W4M (the "14-28 well"), is east of the 16-29-15-25W4M (the "16-29 discovery well") and encountered gas. A ten-day test of this well was concluded on November 9, 2005. In the final 9 hours of the test, the well flowed at a stabilized rate of 4.2 million cubic feet per day ("mmcf per day") of natural gas with 11 barrels ("bbls") per mmcf of natural gas liquids on an 8.73 millimeter (11/32 inch) choke. During the test period, the maximum flow rate was restricted to 8.1 mmcf per day. The calculated Absolute Open Flow (AOF) potential of the 14-28 well is estimated at 38.0 mmcf per day.

The second delineation well, located at 6-32-15-25W4M (the "6-32 well"), is northwest of the 16-29 discovery well and was drilled to evaluate the thickness of the oil column. The 6-32 well encountered the target zone. The completion resulted in the production of minor gas with no formation water or commercial quantities of oil.

The purpose of the delineation drilling was to determine the extent of the gas and oil column related to the significant discovery located at 16-29 discovery well previously reported by Stylus and Questerre on July 4, 2005. On August 15, 2005, Stylus reported the 16-29 discovery well tested oil at 159 bbls per day and gas at 1.04 mmcf per day for a combined average rate of 332 barrels of oil equivalent per day.

A third delineation well is expected to commence drilling on November 17, 2005. The objective of this well is to aid in determining the size of the oil pool associated with the 16-29 discovery well. If the third delineation well is a successful oil well, the gas will likely remain shut-in to assist in recovery of the oil.

A 5.5 kilometer gas pipeline to the 16-29 discovery well is 50 percent complete, and the balance of the pipeline installation requires frozen conditions that are expected in late November 2005. Upon completion of the gas pipeline, oil and gas production from the 16-29 discovery well is expected to be on-stream at restricted rates pending an application to the AEUB for Good Production Practice status for the pool.


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