QEC At Bargain Basement Prices?

From Canaccord Report (2 Dec. 2008),
Potential Utica Valuation Potential Utica
$/share Leverage as % per s/price
Gastem GMR $ 2.12 311%
Junex JNX $11.38 749%
Questerre QEC $6.33 335%
"Best leverage to the upside on the play remains with these small-cap players (GMR-V,
JNX-V and QEC-T)"
Note: no time frame in that report.

December 4, 2008-La Visitation #1 Successfully Cased as Shale Gas Well

00:15 EST Thursday, December 04, 2008
CALGARY, ALBERTA--(Marketwire - Dec. 4, 2008) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) announced today that the operator has completed drilling of the La Visitation #1 well in the St. Lawrence Lowlands, Quebec.

The well was drilled to target depth of 2770m and logged to evaluate the Utica and Lorraine shale/siltstone zones as well as the carbonates of the Trenton Black-River Group. Based on an analysis of the logs, the well has been cased for shale gas testing, which will be undertaken when equipment is available.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "Drilling results were encouraging as we encountered several naturally fractured intervals in the Lorraine and Utica and promising gas shows."

Drilling operations on the next well, St. David, are expected to commence later this month.
Questerre also reported on the status of re-completion operations on the Gentilly #1 vertical well. Following the stimulation and 800 mcf/d test from the Utica, two intervals in the shallower Lorraine horizon were also fracture stimulated.

The clean up and flow-back of these intervals has been delayed due to operational issues with a packer. The preliminary results from this well are expected in early 2009. Results from the two stimulated horizontal wells on the Yamaska permits are on schedule for release by year-end.
Questerre 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.

Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.
FOR FURTHER INFORMATION PLEASE CONTACT:Questerre Energy Corporation
Anela Dido
Investor Relations
(403) 777-1185
(403) 777-1578 (FAX)
Email: info@questerre.com
Website: www.questerre.com

THE MAN WHO SOLD HOT DOGS

THE MAN WHO SOLD HOT DOGS

Many years ago there was a man who lived by the side of the road and sold HOT DOGS.
He was hard of hearing so he had no radio.

He had trouble with his eyes so he read no newspaper.

But he sold HOT DOGS

He put up signs on the highway telling how good they were.

He stood on the side of the road and cried: "BUY A HOT DOG, MISTER ?"
And people bought, because he was so enthusiastic.

He increased his meat and bun orders.
He bought a bigger stove to take care of his growing trade.

He was so happy selling Hot Dogs, and people enjoyed doing business with him.
One day his son came home from college to help him out.

And something happened.
His son said, "Father, haven’t you been listening to the radio.? Haven’t you been reading the newspaper.?

The situation in Europe is terrible. The Domestic situation is worse."
Whereupon the father thought,"Well, my son’s been to college, he reads the newspaper, he listens to the radio, and he ought to know."

So the father cut down on his meat and bun orders, he took down all his advertising signs, and no longer bothered to stand on the highway to sell his hot dogs.

And his HOT DOG sales fell, ALMOST OVERNIGHT.
"You’re right, son," the father said to the boy.

"WE CERTAINLY ARE IN THE MIDDLE OF A GREAT DEPRESSION."

Crisis? What crisis?

Madelaine Drohan
Thursday, December 04, 2008

OTTAWA — Canada may be in a political crisis, but it is not in an economic one. Why do so many people prefer to believe that we are?

In the rancorous debate in the House of Commons last Tuesday, the words “economic crisis” were uttered 51 times by members of all political stripes as they wrestled for control of the country. On Bay Street and Main Street there is constant talk of economic meltdown and frequent references to the Great Depression as if we are poised on the brink of a similar precipice.

The facts don't back this up. There are trouble spots, certainly, especially in the North American auto industry and the forestry sector, both of which were already in decline long before banks started toppling on Wall Street. And there is no denying that the U.S. economy is in bad shape, which will eventually have some as yet undefined impact here.

But the latest figures show the Canadian economy was still growing through the end of September, unemployment remains low and most forecasters are calling for a modest contraction next year, which while unpleasant is hardly a nightmare scenario.

Clearly there is something to be gained from saying we are in a crisis, even if we aren't.
The political motivation is easiest to identify. The Liberals, New Democrats and Bloc Québécois could hardly say they wanted to topple the Harper government because it intended to cut their funding. That would look too self-serving to voters. Blaming the government for not reacting to a non-existent crisis is a much easier sell.

The Conservatives, meanwhile, started out dealing with the facts, insisting that the current situation did not call for extraordinary measures. This message was somewhat spoiled when they also tried to argue that hard times called for partisan cuts. By mid-week they'd given up all pretence of defending reality and were invoking the non-existent crisis as a reason that the country needed the stability only they could provide.

The only consensus among the warring politicians was on the supposedly dire state of the economy. There was a competition to outdo each other in misleading and irresponsible statements about where the economy was heading.

John F. Kennedy, the late U.S. president, once said that the Chinese character for crisis had two elements – danger and opportunity. It is the latter that explains why many companies and indeed whole sectors are backing the crisis theory now.

The banks were in there early, calling for extraordinary government aid because of the impact on Canada of the global economic crisis. The Harper government is in the process of borrowing $75-billion dollars, ratcheting up interest-bearing debt in the process, in order to buy mortgages from the banks. Somehow this generous gesture on the part of Canadian taxpayers, who might well have wanted to spend the borrowed money on other things, has slipped below the radar.

The North American car makers also have their hands out, claiming they need help to survive the crisis, even though it has been clear for some time that they were in deep trouble of their own making. “Help us out of the hole we dug,” is not a winning argument when it comes to prying loose government money. So the crisis is invoked yet again, in both the U.S. and Canada.
The car makers are far from the only ones who gain from a crisis atmosphere.

All those infrastructure projects that the federal and provincial governments have vowed to speed up mean extra work for engineering firms, designers, suppliers and builders. Who among them would dare mention at this delicate juncture that things really aren't that bad?

Then there are the media. Alarmist headlines and stories are so much more fun to publish or broadcast, regardless whether they reflect the facts. Bad news sells, is the maxim. Journalists don't like to think that they are selling a product, but their corporate owners are keenly focused on the bottom line.

That may not mean there is overt pressure to consciously slant coverage towards the negative. But every journalist worth his or her salt knows subconsciously that a crisis story is more likely to hit the front page or lead the broadcast than some namby-pamby item about things going better than expected.

This deluge of bad news and catastrophic predictions eventually seeps into the public consciousness, frightening people into spending less and saving more, thus helping to create a real crisis. That said, it was heartening to see an Ipsos-Reid poll this week in which 56 per cent of respondents said they thought doomsday predictions of severe recession in Canada were exaggerations.

There is still common sense to be found in Canada, just not among our political, business or opinion leaders.

© Copyright The Globe and Mail