Quest Oil's Acadia North Test Indicates 58 MMCFPD

Quest Oil Corporation is pleased to announce that analysis of the test on its Acadia 10-22-25-2w4m has been completed. The well has a calculated Absolute Open Flow Potential of 58 Million Cubic Feet per Day (MMCFPD). The Company’s engineering firm, CHAPMAN Engineering, advised the Company that it has an estimated "gas-in-the-ground" value of $17.67 Million.

After a review of a number of recent projects in the area, Chapman Engineering has prepared an overview of the numbers based on the latest pricing of gas and determined that at a value of $4.00/Mscf of developed reserves would be a reasonable assumption. These values may be subject to change after the final detailed cash flow analysis has been completed.

Marketable reserves for well 10-22 have been estimated volumetrically as presented below. These reserves are supported by material balance of this Viking pool. Effective drainage area and recovery factors are the main variables in this determination, resulting in a range of volumes for different reserve categories, all of which are governed by Chapman’s confidence factors.

Category Volume - MMscf Value @ $4.00/Mscf - $MM
Proved Developed 1957 $7.83
Proved Plus Probable 3187 $12.75
P+P+P 4418 $17.67

Chapman Engineering states, “Well 10-22 is a highly capable well (18 MMscf/d surface AOF), which we anticipate will be produced at about 2.0 MMscf/d with minimal drawdown to maximize recovery.”

Quest also has commenced drilling on the Empress project, well 12-15-24-2w4m. This well is approximately 7 miles south of the Acadia project. This is a deeper well than the Acadia wells and even though the Viking zone is a prospective horizon in this project, the main target is the Detrital and two Mississippian zones that had hydrocarbon in a well ½ mile west of the 12-15 drill site. Results of the testing of the offset well are still confidential but are known to be very commercial. Logging and testing of the 12-15 well are expected to in the next few days.