Questerre Spuds A-5 Well at the Beaver River Field

Questerre Energy had begun drilling on the A-5 re-entry at the Beaver River Field in British Columbia, Canada. The new A-5 well is drilling directionally to the crest of the Beaver River Field to capture attic gas. Attic gas is gas that exists above the highest producing well. Questerre's independent reservoir engineers, McDaniel & Associates Consultants Ltd., have assigned gross probable reserves of 10.9 Bcf for attic gas within the A-5 compartment. Questerre anticipates that the new A-5 well will be capable of producing at similar rates as the Chevron Canada 2K-29 well at the Liard Field currently producing at 25 mmcf/d on a restricted basis.

The re-entry was officially spudded under the BC Oil & Gas Commission regulations late October with the successful milling of a 3-meter window in the 7'' production casing at a measured depth of 2283m. The operator is switching to an oil-based mud system as drilling commences through several shale packages prior to reaching the Nahanni formation. The well is expected to reach its target measured depth of 3500m by late November.

Questerre plans to drill two wells on the Beaver River Field in 2004. These and future wells will target isolated compartments identified by a 3-D seismic survey that have been untapped by existing wells. Questerre's independent reservoir engineers have assigned gross possible reserves of 101 Bcf to these undrilled mapped compartments. Michael Binnion, President of Questerre commented, "Based on Chevron Canada's success with its horizontal well at the Liard Field, we are very excited about our new A-5 well. It is our objective to have this well completed, tested and on production before year-end."

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