Questerre Receives Approval to Drill on the Beaver River Fie

Questerre Energy has received approval from the Oil and Gas Commission in British Columbia to alter the existing A-5 well on the Beaver River Field. Questerre and it partners applied to re-enter the A-5 well bore and abandon the existing completion in the Nahanni formation at 3,480 meters measured depth (MD). They propose to cut a window in the 9-5/8" casing at 2,300 meters MD and drill directionally to the crest of the structure. Based on a 3-D seismic survey acquired by Questerre last year, the Company interprets the crest of the structure to be approximately 450 meters west and 107 meters higher than the existing A-5 well, currently the highest well in the structure. The new well will be completed to 3,530 meters MD with a 150 to 200 meter open-hole horizontal section.

Michael Binnion, President of Questerre commented, "I am pleased we received our approval so quickly and with minimum conditions. I think it shows that the BC government and local First Nations are good to their word that they are open for business. We enjoy an excellent relationship with the Oil and Gas Commission and local community groups and remain committed to local involvement in our project."

The Beaver River Field was discovered in 1961 and placed on production in 1971. The average vertical well drilled on the Field produced 29.8 Bcf of gas with an initial rate of approximately 40 mmcf per day. Questerre is applying improved production techniques to maximize its net proven, probable and possible reserves at Beaver River of 88.2 Bcf of natural gas as reported by the Company's independent reserve engineers, McDaniel & Associates Consultants Ltd.