Questerre to Participate in Major Pilot Project in the Lowlands
02:15 EDT Wednesday, May 21, 2008
CALGARY, ALBERTA--(Marketwire - May 21, 2008) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) announced that it plans to participate with its partner Talisman Energy Canada ("Talisman") in a major pilot program to assess the commerciality of unconventional gas in the St. Lawrence Lowlands, Quebec.
In addition to the previously announced commitment to drill three vertical test wells, the pilot program will include vertical and several horizontal wells. Questerre expects the program to be carried out in 2008 and 2009 with a budget in excess of $100 million. For its acreage in the play fairway, Questerre will budget, on a net basis, between $25 million and $30 million of which $3 million to $5 million is expected to be spent in 2008 with the balance in 2009. These amounts do not include anticipated spending on the Yamaska licenses.
The pilot project to assess commerciality will focus on the siltstone/shale sequences of both the Utica and Lorraine. Based on recently published data by Talisman, the discovered resource for the Lorraine of 50 Bcf-190 Bcf per section compares favorably to the discovered resource for the Utica of 25 Bcf-160 Bcf per section. The initial three vertical test wells will also test the Trenton Black-River. Further investment in the Trenton Black-River will be contingent on the exploration results achieved.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "We are delighted with the expanded program to evaluate commerciality of both the Lorraine and Utica formations. Based on work to date we believe the rock properties are very promising for unconventional gas in the Lowlands."
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.
FOR FURTHER INFORMATION PLEASE CONTACT:Questerre Energy Corporation
Jason D'Silva
VP Finance
(403) 777-1185
(403) 777-1578 (FAX)
Email: info@questerre.com
Website: www.questerre.com