Questfire Energy Corp. Announces 2013 Third Quarter Financial Results

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS. 

Questfire Energy Corp. (the "Corporation" or "Questfire") (TSX VENTURE:Q.A)(TSX
VENTURE:Q.B) is pleased to announce that it has filed on SEDAR its unaudited
financial statements and related management's discussion and analysis ("MD&A")
for the three and nine months ended September 30, 2013.


Financial and Operating Highlights



                              Three months ended         Nine months ended  
                                    September 30,             September 30, 
                                2013         2012         2013         2012 
----------------------------------------------------------------------------
Financial                                                                   
Oil and natural gas                                                         
 sales                  $ 14,040,260 $    138,123 $ 24,636,922 $    296,167 
Funds flow from                                                             
 operations (1)            5,211,946     (282,642)   7,137,230     (915,162)
  Per share, basic              0.40        (0.02)        0.55        (0.07)
  Per share, diluted            0.07        (0.02)        0.14        (0.07)
Income (loss)               (334,256)    (567,545)      77,178   (2,134,276)
  Per share, basic             (0.03)       (0.04)        0.01        (0.17)
  Per share, diluted           (0.03)       (0.04)        0.01        (0.17)
Capital expenditures       2,847,732      777,103    3,891,634    2,493,064 
Property acquisitions      1,522,782            -   82,159,743            - 
Working capital                                                             
 (deficit) (end of                                                          
 period)                                           (44,373,757)      29,342 
Non-current debentures                                                      
 (end of period)                                   (30,709,720)  (1,326,613)
Shareholders' deficiency                                                    
 (end of period)                                    (1,829,505)    (710,941)
Shares outstanding (end                                                     
 of period)                                                                 
  Class A                                           12,963,001   12,813,001 
  Class B                                            2,055,840      555,840 
Options outstanding (end                                                    
 of period)                                          1,791,000    1,281,000 
Weighted-average basic                                                      
 shares outstanding       12,963,001   12,813,001   12,893,221   12,813,001 
Weighted-average diluted                                                    
 shares outstanding       12,963,001   12,813,001   14,481,900   12,813,001 
Class A share trading                                                       
 price                                                                      
  High                          1.25         0.50         1.47         1.20 
  Low                           0.65         0.45         0.50         0.40 
  Close                         1.00         0.50         1.00         0.50 
                                                                            
Operations(2)                                                               
Production                                                                  
  Natural gas (Mcf/d)         25,443          397       14,427          352 
  NGL (bbls/d)                   621            5          348            3 
  Crude oil (bbls/d)             447            3          266            2 
  Total (boe/d)                5,308           74        3,018           63 
Benchmark prices                                                            
  Natural gas                                                               
    AECO (Cdn$/GJ)              2.32         2.16         2.90         2.01 
  Crude oil                                                                 
    WTI (US$/bbl)             105.82        92.18        98.15        96.16 
    Edmonton par                                                            
     (Cdn$/bbl)               105.17        84.77        95.57        87.28 
Average realized prices                                                     
  Natural gas (per Mcf)         2.58         2.47         2.99         2.18 
  Natural gas liquids                                                       
   (per bbl)                   66.21        64.97        62.01        67.14 
  Crude oil (per bbl)         102.61        83.52        95.89        79.59 
Operating netback (per                                                      
 boe)                          12.32        11.04        13.32         7.44 
Funds flow netback (per                                                     
 boe)                          10.67       (41.84)        8.66       (53.05)
(1) For a description of Funds flow from operations, refer to the         
    commentary in the Management's Discussion and Analysis under Non-GAAP 
    measures.                                                             
                                                                          
(2) For a description of the boe conversion ratio, refer to the commentary
    in the Management's Discussion and Analysis under Basis of Barrel of  
    Oil Equivalent.                                                       



Third Quarter 2013 Corporate Highlights



--  Averaged production of 5,308 boe per day, 80 percent natural gas. 
    
--  Achieved record quarterly sales of $14.04 million. 
    
--  Achieved record funds flow from operations of $5.21 million ($0.40 per
    basic share). 
    
--  Made capital expenditures of $2.85 million, focused on facility
    maintenance, well work-overs and participation in non-operated
    horizontal oil drilling. 
    
--  Surveyed five 100 percent working interest oil drilling locations at
    Open Lake. Exiting the quarter, land work was underway for three 100
    percent working interest drilling locations at Bow Island and Thorsby. 



President's Message

The third quarter of 2013 marked the first full quarter of operations following
the previously announced Advantage asset acquisition on April 30, 2013. During
the quarter the Corporation achieved a number of all-time highs including record
high production, revenue and funds flow from operations. We are very pleased
with the acquired assets, which continue to produce as expected with relatively
low decline profiles, and are serving as a solid foundation for Questfire's
growth plans with oil drilling to commence in this quarter.


Facility maintenance was a priority during the quarter, with four major
compressor overhauls performed as well as a significant natural gas plant
turnaround in the Lookout Butte field during September. Field staff did an
excellent job of minimizing this scheduled downtime, helping to achieve average
quarterly production of 5,308 boe per day during the quarter. 


Questfire's technical team was busy throughout the quarter, identifying and
preparing drilling locations for the fourth quarter and beyond. Up to 17 infill
drilling locations, targeting Deep Basin light oil zones, have been identified
at Open Lake. Five of these seventeen locations, all at 100 percent working
interest, were surveyed during the quarter, with drilling planned for late in
the fourth quarter of 2013 and the first quarter of 2014. Other locations being
prepared for the fourth-quarter drilling program include two 100 percent
exploratory oil well locations in Bow Island in Southeast Alberta and a 100
percent working interest oil location in the Thorsby field in Central Alberta.
We also elected to participate in the drilling of a horizontal oil well in the
Wildmere field, with a one-third non-operated working interest, which will be
drilled in the fourth quarter.


Questfire's strategy for the fourth quarter 2013 is to employ a modest capital
budget of approximately $4 million. This capital spending is to be financed
primarily from cash flow and is focused mainly on increasing light oil
production via drilling and recompletion opportunities on our asset base, as
well as on the maintenance and optimization of our producing natural gas assets.
If warranted by drilling success, Questfire has sufficient bank line room
(approximately $17 million) to accelerate oil development.


At the time of this report, the winter heating season is commencing, with North
American natural gas storage just starting to transition from net injection to
net withdrawal. Although current natural gas prices are at levels comparable to
a year ago, we believe the fundamentals for the continued strengthening of
natural gas prices are in place. Natural gas consumption continues to grow and
the industry is making progress on a number of liquefied natural gas (LNG)
export projects around North America, which we believe will drive increased
future demand over the medium to longer term. On the supply side, overall North
American natural gas production is slowly reaching a plateau, with most basins
showing declining or flat natural gas production. 


The Questfire team will continue to carefully manage the asset base and will
continue to protect cash flow with an active commodity price hedging program.
Our main goals continue to be to maintain and optimize natural gas production
while increasing our oil production and overall cash flow without significantly
increasing overall debt.


Questfire issued 75,000 options to a director pursuant to its stock option plan.
The options have an exercise price of $0.95 per share and will expire on
November 19, 2023. The Corporation has determined that exemptions from the
various requirements of TSX Venture Exchange Policy 5.9 are available for the
grant of stock options to the director. The Corporation has further determined
that an exemption from the various requirements of Multilateral Instrument
61-101 is available as the fair market value of the grant of options is less
than 25% of the market capitalization of the Corporation.


Questfire Energy Corp. is an Alberta-based company formed to participate in oil
and gas exploration, development and acquisitions focusing in the W4 and W5
regions of Alberta. The Corporation's shares trade on the TSX Venture exchange
under the symbols Q.A and Q.B. The Corporation currently has 12,963,001 Class A
shares and 2,055,840 Class B shares outstanding.


To view a full copy of the Corporation's unaudited financial results for the
three months and nine months ended September 30, 2013, including the
Corporation's accompanying MD&A, please refer to the SEDAR website at
www.sedar.com or contact the Corporation at Questfire Energy Corp., 500, 400 -
3rd Ave S.W., Calgary, Alberta, T2P 4H2.


Reader Advisory

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations, and capital expenditures
and the timing thereof, that involve substantial known and unknown risks,
uncertainties, and assumptions certain of which are beyond Questfire's control.
Such risks, uncertainties, and assumptions include, without limitation, risks
associated with oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations (including
the adoption of new environmental laws and regulations) and changes in how they
are interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory authorities. Questfire's actual results,
performance or achievements could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no assurances can
be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits, including the
amount of proceeds, that Questfire will derive therefrom. Readers are cautioned
that the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to Questfire
or persons acting on its behalf are expressly qualified in their entirety by
these cautionary statements. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release and
Questfire does not undertake any obligation to update publicly or to revise any
of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by applicable
securities laws.


Petroleum and natural gas volumes are converted to an equivalent measurement
basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6
thousand cubic feet of natural gas equalling 1 barrel of oil. This is based on
an energy equivalency conversion method applicable at the burner tip and does
not necessarily represent a value equivalency at the wellhead which is
approximately 30 Mcf to 1 bbl. Readers are cautioned that boe figures may be
misleading, particularly if used in isolation.


To request a free copy of Questfire's financial report or if you would like to
be put on Questfire's mailing list please contact Ronald Williams, Vice
President, Finance and CFO at [e-mail] 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Mr. Richard Dahl
President and CEO
[phone]
[phone] (FAX)


Mr. Ronald Williams
Vice President, Finance and CFO
[phone]
[phone] (FAX)