Questerre's Utica Shale Discovery Assessed at Over 4 Tcf

Questerre announced that Netherland, Sewell & Associates, Inc., an independent reservoir engineering firm based in Texas, has estimated the prospective original gas in place for the Utica shale in the deep fairway in the St. Lawrence Lowlands at 150 Bcf per square mile, which is 66% higher than earlier industry figures. NSAI has further estimated Questerre's prospective recoverable resources to range between 2.2 Tcf – 8.0 Tcf with a best estimate of 4.28 Tcf, equivalent to 360-1,300 million barrels of oil equivalent.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We are very pleased the report confirms the significance of our discovery in Quebec. This is the first time we have released estimates of our Utica gas discovery."

Mr. Binnion further added, "We took time to ensure there is significant and material technical data to support them and we have had them independently verified by a highly reputable engineering firm. The estimates relate only to our lands that have geology validated by successful wells. The independent estimates are materially higher than past industry figures which we believe reflects the additional data, technical work and advancement on the learning curve."

The Company commissioned NSAI to complete an evaluation of the resource potential of the Utica shale. Utilizing their extensive expertise evaluating other established and emerging shale plays, the evaluation includes detailed petrophysical and geologic analysis including a review of the available core and lab analysis data. Preliminary results have been prepared in accordance with the regulations pursuant to National Instrument 51-101, Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.

The evaluation is focused on the acreage between the two main geological features, the Yamaska growth fault and Logan's Line, where Questerre holds approximately 833,000 gross acres in the deep fairway.

Preliminary results include:

• Prospective Original Gas in Place ("OGIP") volumes for the Utica shale range between 96 Bcf -- 210 Bcf per square mile with a best estimate of 150 Bcf per square mile.
• Total prospective OGIP volumes for Questerre's gross acreage are between a low estimate of 82.7 Tcf to a high estimate of 180.5 Tcf with a best estimate of 129.2 Tcf
• Prospective resources estimated to be recoverable for Questerre's interest range from 2.18 Tcf to 8.0 Tcf with a best estimate of 4.28 Tcf.

The assessment is being updated to include results from the recently completed St. Edouard #1 well that tested at rates of 700 mcf/d from the target middle Utica interval. A final report is expected this fall. The estimates do not include the gross overriding royalty held by Questerre nor an assessment of the shallower Lorraine interval.