QEC-Second High Liquids Montney Well Tests at 1,800 boe/d

CALGARY, ALBERTA--(Marketwire - Nov. 5, 2012) -

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Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC)(OSLO:QEC) is pleased to report on the test results from its second Montney horizontal well in the Kakwa-Resthaven area of west central Alberta.

The well was successfully completed with a 14 stage water-based nitrogen foam fracture stimulation in the 1230m horizontal section. Initial clean up and flow back began on October 31, 2012 and the well was tested for a 96-hour period thereafter against a gathering system pressure of approximately 1100 psi.

Over the last 24 hours of the production test, the well flowed 974 bbl/d of condensate and 4.97 MMcf/d of natural gas at a flowing casing pressure of approximately 7500 kPa (1100 psi) on choke sizes ranging from 16.67 mm to 15.08 mm. A subsequent four-hour test was completed to determine the free-flowing capability of the well against a wellhead pressure of 2477 kPa (360 psi). On this four-hour test, the well flowed at 1324 bbl/d of condensate and 6.4 MMcf/d of natural gas. Production tubing is currently being installed and the well will be tied into the third party processing plant by early next year.

Michael Binnion, President and Chief Executive Officer of Questerre commented, "The test results from this well are consistent with the results from our first well. Although the horizontal section for this well is approximately 85% of the first well, the higher condensate rate validates our view that our land lies in the heart of the liquids-rich fairway for this resource play. We look forward to further developing our acreage."

Questerre also reported that in conjunction with its partners, it has acquired an additional three-quarters of a section of land immediately adjacent to the section of land on which the second well was drilled.

Questerre holds a 25% interest in this well and in 16.75 contiguous sections (10,740 acres) of land offsetting this well.