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Press release from Marketwire

Questerre Spuds Second Montney Well

Thursday, August 23, 2012

Questerre Spuds Second Montney Well14:38 EDT Thursday, August 23, 2012CALGARY, ALBERTA--(Marketwire - Aug. 23, 2012) -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) reported today that drilling operations have commenced on its second well targeting the liquids-rich window of the Montney shale in the Resthaven area of west central Alberta. This follows the discovery well that tested at gross rates of over 2,500 boe/d.Michael Binnion, President and Chief Executive Officer, commented, "This second well will delineate the prospectivity of our acreage to the north of the discovery well. The test rates from our first well confirmed that our acreage lies in the heart of this play with excellent liquids and condensate recoveries. Based on these results and surrounding activity, we believe our second well has the potential to do the same."The well will be drilled approximately two miles to the north of the discovery well. The plan is to drill vertically to a measured depth of approximately 3500m, prior to drilling a 1200m horizontal leg into the target interval in the Montney formation. The operator anticipates drilling to be finalized early in the fourth quarter. Subject to completion equipment availability, stimulation and testing is planned shortly thereafter. The Company also updated the status of the first well. The construction of the main pipeline to a third party processing plant is underway and scheduled for completion by the end of the third quarter. Subject to available capacity, Questerre expects this well to be placed on production at facility constrained rates in the fourth quarter. Questerre holds a 37.5% interest in this well before payout and a 25% interest in this well after payout.To address these facility constraints, together with its partners, Questerre has commenced preliminary engineering work on construction of its own central processing facilities of initially up to 25 MMcf/d to facilitate its future development plans for this area.Questerre holds a 25% interest in this second well and the 16 contiguous sections of land in this area.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 the timing to drill and complete and the results from the second well being drilled in the Resthaven area of Alberta as well as the tie-in of the first well. 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 www.sedar.com. 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.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.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.FOR FURTHER INFORMATION PLEASE CONTACT: Anela DidoQuesterre Energy CorporationInvestor Relations(403) 777-1185(403) 777-1578 (FAX)info@questerre.com