HOUSTON, Sept. 22, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL), is pleased to announce the launch of the Company's oil and gas service division, Petrostar Oil Services, Inc. (Petrostar). Quest Oil Corporation has established a subsidiary Texas corporation, Petrostar Oil Services, Inc.
Quest has completed the purchase of a service rig to initially conduct workover operations on the ninety-five wells on the Hawkeye leases. The service rig will be the property of Petrostar to conduct the operations of the workover for Quest leases and for third party companies. Contracting work with third party companies will establish revenues for Petrostar in addition to performing work on the Company-owned lands. The service rig is capable of pulling to 6,500', which makes this rig versatile to Petrostar, Quest and its customers.
The service rig is on route to Eastland County, Texas, Hawkeye leases with a hired rig crew that will operate the rig as well as perform roustabout work, maintenance of the wells and initiate pumping on the leases. Electric service to the wells has been re-established to start the workover program, to pull the downhole equipment for analysis, repair any equipment and then place the wells back into production.
The initial production is estimated at an average of 8 -- 10 bopd per well with an initial 52 wells to place on line over a 60 day period. After this work is completed, the initial production rate will be 420 bopd. The reserve report states that 308,000 barrels of oil can be recovered from the initial program with a PV10 value of $3.3 million. According to Gleason Engineering, after the remaining wells beyond the 52 wells are placed on line "An additional reserve volume can be equal to or greater than the reserve volumes reported. The added volume would be equal to or greater than 600,000 barrels of oil with a PV10 value equal to or greater than $6.5 million." Additional deeper potential is available, particularly the Barnett Shale; these pay zones will be established after seismic and IP testings are completed over the following months.
According to Company CFO, Mr. Joseph Wallen, "By establishing Petrostar with inclusion of the service rig and staff provides an attractive financial position for Quest, by owning its assets the Company can control costs and lessen workover expenses and wait time for a third party rig. This combination puts Quest in the position to earn a greater return on the leases."
ABOUT QUEST OIL CORPORATION
The Company is committed to the exploration and development of economical oil and natural gas reserves throughout North America. Quest management is focused on an acquisition program targeting high quality and low risk prospects. Initially, Quest is focused on the development of North American oil and gas resources allowing highly leveraged production opportunities in Alberta and Texas, through its 100% owned subsidiaries Quest Canada Corp. and Wallstin Petroleum LLC.
ON BEHALF OF THE BOARD
Quest Oil Corporation. "Cameron King" Cameron King MBA -- President and CEO
To find out more about Quest Oil Corporation (OTCBB:QOIL), visit our website at www.questoil.com.