Oilsands Quest Completes Seismic on NW Saskatchewan Permits

Oilsands Quest Inc. reported a high level of activity on its oil sands exploration permits in northwest Saskatchewan, where current field activities are focused on geophysical programs and environmental studies.

"We have just completed a significant seismic survey, and we have initiated an extensive airborne magnetic survey program," said Christopher H. Hopkins, President and CEO of Oilsands Quest. "Subject to regulatory approval, we plan to continue with more seismic and drilling throughout the summer. Equally important, in preparation for potential commercialization, we have launched a major program of baseline environmental studies."

Field activities update

On May 8, permits were granted by the Saskatchewan Government for the continuation and expansion of 2-D seismic surveys. Since then, approximately 60 kilometers (37 miles) of seismic have been completed, primarily along the main road from Provincial Highway 955 to the site of Oilsands Quest's base camp. The company plans to continue to undertake seismic work, including 3-D seismic surveys. Over 160 kilometers (100 miles) of seismic were run during the winter 2006/07 exploration program. Subject to approval, the company also plans to conduct additional seismic surveys on its Alberta permits, which are immediately west of its Saskatchewan permits.

Last week, two fixed-wing aircraft began a high-resolution, intensive 21,000-kilometer (13,000-mile) airborne magnetic survey program within the company's Saskatchewan permit lands, building further on the 850 kilometers (530 miles) of airborne surveys made this past winter.

During the past two months since completion of winter drilling operations, Oilsands Quest's base camp has hosted a daily work force of up to 55 people involved in a variety of field program activities.

Baseline environmental studies initiated

Environmental activities, which include environmental monitoring on an ongoing basis, have escalated dramatically this summer to include a comprehensive, $4 million program of baseline environmental studies. This program, which is integral to the timeline for potential project development, began in early April and will continue through the summer and fall.

Involving approximately 16 environmental disciplines and 40 to 50 people in the field, the baseline studies are focusing on such topics as water and air quality, hydrogeology, fisheries, soils and terrain, vegetation, wildlife, biodiversity, and traditional land use and ecological knowledge.

Pre-commercialization studies advancing

In tandem with field operations, Oilsands Quest is also advancing the pre-commercialization evaluation studies of its Axe Lake Discovery. Dr. Erdal Yildirim, Executive Vice President, Project Development, said, "We are working with industry-leading specialists and participating in the evaluation of a number of alternative production methods expected to optimize recovery for our reservoir, as well as finalizing the timelines for the Axe Lake in situ bitumen recovery field pilot."

Technical office opened in Calgary

In early May, the company opened a technical facility in the light industrial area of northeast Calgary for its growing geological and engineering staff. At the present time, Oilsands Quest has 23 employees.

Oilsands Quest Inc. is building long-term shareholder value through exploration of its oil sands permits in Saskatchewan and Alberta. The company has initiated pre-commercialization studies for its Axe Lake Discovery, placing it at the forefront of the development of an oil sands industry in the province of Saskatchewan.