Questerre to Test Multiple Shale Intervals for St. Edouard #1 in Quebec

Questerre reported that testing will commence shortly on multiple shale intervals for the St. Edouard #1 well in the St. Lawrence Lowlands, Quebec. This follows a recent open-hole test of the deeper Trenton Black-River ("TBR") interval in this well.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "With the significant natural fracturing and over-pressured intervals encountered while drilling, we look forward to the stimulation and testing of the shales in St. Edouard #1. This well offsets the Leclercville #1 well that recently tested 900 mcf/d on a stabilized basis from the Utica."

Testing of multiple intervals in the upper shale sequences will begin this summer once equipment and personnel are mobilized.

The TBR carbonate interval was acid stimulated and the well flowed sweet natural gas over a three-day test period with a final rate of 2.2 mmcf/d and wellhead pressure of 2000 psi (14 Mpa) on a 7/32 inch (5.6 mm) choke. No water was produced on this test. The well is currently shut-in for buildup and further testing. Based on an initial review of the pressure data, the Company anticipates the TBR zone in this well will not support the tie-in costs to the distribution system on a stand-alone basis.

Mr. Binnion further added, "The natural fracturing contributed to strong initial flow rates from the TBR. More importantly, the cuttings indicate altered limestone that confirms the potential for the TBR exploration model. While we do not expect to tie-in this well, we believe the TBR remains a valid exploration target and plan to test additional prospects with future wells."


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