Questerre Energy statement regarding 15-01 Kakwa gas well

1/12/2013 12:39 PM EST

Calgary, Alberta -- Questerre Energy Corporation 
("Questerre" or the "Company") is currently conducting 
testing operations on a Montney natural gas well, 
("15-01" or the "Well"), in the Kakwa area, 45 
kilometers north of Grand Cache, Alberta.

During a routine pressure test of the wellbore 
integrity we experienced an equipment failure 
resulting in an uncontrolled release of gas and fluids 
from the Well. Well site staff were all safely 
evacuated and first responders have secured the site.

All people on site are accounted for and there are no 
injuries. The RCMP temporarily closed the nearby 
highway until the situation was understood and it is 
now reopened. We have dispatched well control experts 
and a safety team to a nearby offsite command center.

The Company is working closely with the regulators to 
bring the Well under control as quickly as possible 
and to investigate the cause of the equipment failure.

Michael Binnion, President and Chief Executive Officer 
commented, "A loss of well control is the most serious 
incident we can have in our business. This is the 
first in my career and I hoped that any company I 
worked with would never be involved in one." He added, 
"As an advocate for our industries' safety record it 
is simply unacceptable to be responsible for this 
accident.  We will do everything possible to mitigate 
the situation and ensure it is not repeated."

Background

During preliminary testing operations for the 15-01 
well, H2S was detected which appears to be associated 
with the produced water. The natural gas was tested 
while drilling and was confirmed to be sweet natural 
gas.

Until it is conclusively proven that the H2S is from 
sour produced water, as a safety precaution the Well 
is being treated as a sour gas well.

Very sensitive H2S monitoring equipment is being 
operated in the area by our safety experts. To this 
point, trace amounts of H2S have been detected but 
nothing over 1 part per million.  

For further information, please contact:

Questerre Energy Corporation
Michael Binnion, President
(403) 807-73-75 | Email: