Questerre Announces Preliminary Year-End Results

CALGARY, ALBERTA--(Marketwire - Feb. 26, 2010) -

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 on its preliminary financial and operating results for 2009.

Michael Binnion, President and Chief Executive Officer of Questerre, commented, "2009 was a fantastic year for Questerre. We confirmed our significant Utica shale discovery that we believe ranks among the top ten natural gas discoveries onshore North America. The recent St. Edouard No. 1A horizontal test result is a very positive indicator for the commerciality of our discovery."

Mr. Binnion added, "With challenging financial markets, we preserved capital in 2009 by deferring our development drilling programs in Antler and Greater Sierra. This resulted in preserving $46.50 million in positive working capital at year-end with average daily production of 810 boe/d and cash flow of $2.88 million for the year."

2009 Highlights

- Consistent repeatable results from Utica pilot vertical well program in the St. Lawrence Lowlands, Quebec

- Independent resource assessment of Utica shale estimates potential recoverable resource at 4.28 Tcf or 713 million barrels of oil equivalent to Questerre's net working interest

- Evaluated new drilling and completion techniques in Antler, Saskatchewan with encouraging results

- Minimal capital investment and higher oil weighting generated cash flow of $2.88 million with average daily production of 810 boe/d

- Maintained financial strength with $46.50 million in positive working capital and no debt

For the year ended December 31, 2009, the Company reported cash flow from operations of $2.88 million as compared to $17.29 million for the prior year. Reduced production volumes and significantly lower commodity prices were marginally offset by an increased proportion of oil production. Questerre's production averaged 810 boe/d (2008: 1,178 boe/d) with oil and liquids accounting for 47% of volumes (2008: 33%). As at December 31, 2009, the Company reported a net working capital surplus of $46.50 million (2008: $54.31 million).

Questerre Energy Corporation is an independent energy company focused on shale gas in North America. The Company is concentrated on establishing commerciality of its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec.

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"). Although the Company 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 the Company. 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 statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, 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, the Company 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.