Oilsands Quest Begins Drilling in Alberta, Net Pay Upcoming

Oilsands Quest initiated exploratory drilling on January 10, 2008 on its exploration permits in Alberta and, by February 9, 2008 had drilled five holes. The holes are located within an area of approximately two sections or five square kilometres (about two square miles) and encountered McMurray formation at depths ranging from 157 to 164 metres (515 to 538 feet). The estimated thickness of the McMurray formation, which includes meaningful bitumen intercepts, ranges from 20 to 46 metres (65 to 150 feet). Bitumen saturation, net pay thicknesses and other reservoir characteristics will be determined following third-party core and laboratory analysis, which will take several months to conduct.

Oilsands Quest currently has four drilling rigs working on the Alberta side of its contiguous land holdings. The company hopes to drill up to 30 exploratory holes in its current Alberta drilling program by the end of the winter drilling season, which traditionally ends during the last half of March with the arrival of spring break-up conditions.

Field work in Oilsands Quest's winter 2007/08 seismic program in Alberta, which includes 2D and 3D surveys, is underway. It is expected that planned seismic field work will also be completed by the end of the winter season.

In its winter 2007/2008 Saskatchewan drilling program to date, Oilsands Quest has drilled a total of 96 delineation holes, along with 16 piezometer holes (for ground water monitoring) since September 2007. All of these holes are located in the Axe Lake Discovery area. Core samples and drilling data are being evaluated.

Four drilling rigs are currently at work on the company's land holdings in Saskatchewan. This week, Oilsands Quest plans to shift the focus of current Saskatchewan drilling and step out from the Axe Lake Discovery area. Field work in the Saskatchewan 2D and 3D seismic programs for winter 2007/08 has been completed, and processing is now underway in Calgary. During January, Oilsands Quest's two camps, both located in Saskatchewan, have averaged a total of 305 personnel.