Questfire Energy Corp. Announces Closing of Purchase of Oil and Gas Assets

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Questfire Energy Corp. ("Questfire" or the "Company") (TSX VENTURE:Q.A) (TSX
VENTURE:Q.B) is pleased to announce that it has closed its previously announced
Purchase and Sale Agreement to acquire conventional producing assets from
Advantage Oil & Gas Ltd. for total consideration consisting of $40.2 million of
cash, $32.6 million of senior secured convertible debentures and 1.5 million
Class B shares. 


The consents of a majority of holders of Questfire debentures have been obtained
and all conditions have been satisfied, including the final approval of the TSX
Venture Exchange.


This acquisition has effectively transformed Questfire from a micro-cap start-up
public oil and gas company to a midsize producer with a stable cash flow base
and a significant inventory of light oil and gas drilling and recompletion
opportunities, many of which are 100% working interest. The acquisition is in
lockstep with Questfire's stated objectives of generating and developing its own
prospects, acquiring oil and natural gas properties and participating with joint
venturers and other industry partners in oil and gas exploration and development
in the Western Canada Sedimentary Basin.


The Class A Shares and Class B Shares are listed on the TSX Venture Exchange
under the trading symbols Q.A and Q.B respectively. The Corporation currently
has 12,813,001 Class A shares and 2,055,840 Class B shares outstanding. 


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 including banking arrangements, 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 under
current commodity prices is approximately 30 mcf to 1 bbl. Readers are cautioned
that boe figures may be misleading, particularly if used in isolation.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Questfire Energy Corp.
Mr. Richard Dahl
President & Chief Executive Officer
403-263-6691
403-263-6683 (FAX)


Questfire Energy Corp.
Mr. Ronald Williams
Vice President, Finance & Chief Financial Officer
403-263-6658
403-263-6683 (FAX)