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GPP Grand Petroleum

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Share Name Share Symbol Market Type
Grand Petroleum TSXV:GPP TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
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Questerre Tests 1,000 boe/d Vulcan Light Oil Well

23/06/2008 6:00am

Marketwired Canada


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 the initial test results from its first stage-fractured
horizontal well in the Vulcan oil pool in Southern Alberta. Questerre and
Compton Petroleum Corporation ("Compton") each have a 50% interest in this well
and the oil pool.


The Questerre operated well was drilled to a vertical depth of approximately
1900m with a 500m horizontal leg in the target Mannville Formation. The well was
subsequently stimulated with a four-stage selective frac and free-flowed to
surface light oil and associated natural gas at rates in excess of 1,000 boe/d.
During a subsequent 5-day test, with capacity constraints, the well flowed to
surface on a 11/2-inch choke at rates of 750 bbl/d with associated gas and less
than a 10% water cut.


Michael Binnion, President and Chief Executive Officer of Questerre, commented,
"This well exceeded our expectations and is another example of our success in
applying selective frac'ing technology. The initial results from this well are 3
to 4 times the rate from the adjacent 16-20 vertical fractured well. We look
forward to follow-on development of this pool."


Questerre expects the well will be placed on production with an initial
regulatory restricted rate of 315 bbl/d plus gas during the New Oil Well
Production Period ("NOWPP") until the Company obtains Good Production Practice
("GPP") status to commence full production from the oil pool.


Field operations are already underway to tie in the well to the existing
gathering system and battery. Questerre expects the well to be placed on
production in July. Questerre and Compton have identified two additional infill
locations and are in the process of applying for licenses to drill the next
well, which is anticipated to be operated by Compton.


Questerre is a Calgary-based independent resource company actively engaged in
the exploration, development and acquisition of high-impact exploration and
development oil and gas projects in Canada.


This news release contains forward-looking information. Implicit in this
information are assumptions regarding commodity pricing, production, royalties
and expenses, that, although considered reasonable by the Company at the time of
preparation, may prove to be incorrect. These forward-looking statements are
based on certain assumptions that involve a number of risks and uncertainties
and are not guarantees of future performance. Actual results could differ
materially as a result of changes in the Company's plans, commodity prices,
equipment availability, general economic, market, regulatory and business
conditions as well as production, development and operating performance and
other risks associated with oil and gas operations. There is no guarantee made
by the Company that the actual results achieved will be the same as those
forecasted herein.


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 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.


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.


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