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Press release from Marketwire

Questerre Energy Corporation: High Liquids Montney Well Tests at Over 2,500 Boe/d

Friday, May 04, 2012

Questerre Energy Corporation: High Liquids Montney Well Tests at Over 2,500 Boe/d00:15 EDT Friday, May 04, 2012CALGARY, ALBERTA--(Marketwire - May 4, 2012) -NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESQuesterre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) is pleased to report on the test results from its Montney horizontal well in the Kakwa-Resthaven area of west central Alberta.The well was successfully completed with a 15-stage water based foam fracture stimulation in the 1430m horizontal section. Initial clean up and flow back began on April 29, 2012 and the well was tested for a 96 hour period thereafter.Over the last 24 hours of the production test, the well flowed 1,150 bbl/d of condensate and 8.3 MMcf/d of natural gas at a flowing casing pressure of 7584 kPa (1100 psi) on a 3/4 inch choke. In addition to the condensate, analysis of the production data indicates that an additional 25-30 bbl/MMcf of natural gas liquids could be recoverable through typical refrigeration process. This could increase to 70 bbl/MMcf if deep cut processing is available. Production tubing is currently being installed to improve recovery of the remaining frac fluid. Michael Binnion, President and Chief Executive Officer of Questerre commented, "These early results exceeded our expectations. While the natural gas test rates are in line with industry activity in the area, the condensate and natural gas liquids were much better. The high liquids rate materially enhances the economics of this play. We are looking forward to tying-in this well to the pipeline and developing this acreage with our partners." Questerre holds a 37.5% interest in this well before payout and a 25% interest in this well after payout. The Company also holds a 25% working interest in 16 contiguous sections (10,240 acres) of land offsetting this well. In conjunction with its partners, Questerre has begun work to tie-in the well to adjacent pipeline infrastructure. Subject to final engineering, regulatory approval and consents, Questerre anticipates the well will be tied in early in the fourth quarter of this year. Work has also started on identifying and surveying follow-up drilling locations. Questerre Energy Corporation is an independent energy company focused on non-conventional oil and gas resources. The Company is currently developing a portfolio of oil shale assets in North America. It is also securing a social license to commercialize its Utica natural gas discovery in Quebec. The Company is underpinned by light oil assets and a strong balance sheet. Questerre is committed to the economic development of its resources in an environmentally conscious and socially responsible manner.This media release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including whether the initial test results are indicative of the long term performance and ultimate recovery of hydrocarbons from the Montney well, the timing of future tie-ins, drilling and development of the Kakwa-Resthaven area of Alberta. Although Questerre believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to Questerre. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Questerre does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.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: Anela DidoQuesterre Energy CorporationInvestor Relations(403) 777-1185(403) 777-1578 (FAX)