HOUSTON, Sept. 12, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL) provides disclosure on the improved Acadia North gas reservoir and anticipated production tie-in of wells "10-22" and "15-34".
Quest Oil has received the Chapman Engineering Report on the Acadia North Gas Project dated September 1, 2005. This report includes the data received from drilling wells "10-22" and "15-34" which has allowed for the interpretation of data on the Arneson Viking gas pool size, thickness and pressure.
Arneson Viking Pool Pre-Drilling
Pre-drilling estimate of the pool size as per Chapman report states an estimation of 8 BCF of gas in the pool.
Gas under Company land was estimated at 0.827 BCF Proved Reserves plus an additional 1.038 BCF of Probable and 1.010 BCF of Possible Reserves.
Arneson Viking Pool Post Drilling
Post drilling estimate of the gas pool size as per the revised Chapman report is 19 BCF.
Gas under Company lands is now estimated at 1.859 BCF of Proved Reserves plus an additional 1.169 BCF of Probable and 1.169 BCF of Possible Reserves.
It is now believed that gas pool under Company lands for "10-22" gas well to be 1.9 BCF proven, when inclusive of probable and possible reserves, a total estimate of 4.2 BCF could be realized. With the completion of data analysis the Company's PV 10 value for the Acadia North project is stated in the report as $8.7 million for the Proved Reserves and $17 million for the Proved, Probable and Possible Reserves category. Revenue over the life of the project is forecast at $24 million.
Further, with the Company having the successful high bid on the recent Alberta land sale, the company can now include and expand its proven gas reserves to include gas that is known to be under section 23-25-2w4m. This will further increase the Company's proven gas reserve and PV 10 value when calculations are complete.
Cameron King, Company President and CEO states, "Quest has proven its mandate that the Arneson Viking gas pool is a significant gas play with enormous growth and profitability opportunities. Quest is planning to develop the area quickly and economically by drilling our new lands and joint venturing with the surrounding land owners. Management is in the process of contracting 3D seismic crews to assemble detailed mapping to fully understand the scope of the Viking Pool. The Company is planning to drill four wells over the course of the next few months, to aggressively bring the reserve to market sooner than previously planned.
Arneson Well 10-22-25-2-W4M
The Company's "10-22" gas well is scheduled to put in to production by mid-October 2005. With data now recovered and verified from testing, Quest has begun the process of permitting, licensing, trenching and receiving county approvals. All companies must follow the time consuming process of obtaining regulatory and administrative approval, before bringing gas wells on stream. Gas well "10-22" will be brought on stream at 2 mmcf/d realizing gross income of $600,000 monthly. Management will increase flow rate to 4 mmcf/d if there are no indications of water or substantial pressure decline in the well.
Arneson Well 15-34-25-2-W4M
Testing of the "15-34" well will be commencing the week of September 12 for the next 4-6 days as Absolute Open Flow (AOF), down hole pressures and draw down rates need to be determined prior to determining the economics of this well. The Company has previously tested the well and encountered high wellhead pressure measured during the drilling out process and is encouraged that well "15-34" will be deemed commercially viable and tied-in to the nearby Altagas pipeline.
Arneson Section 23-25-2-W4M
The Company acquired the lease by submitting a successful high bid of $60,100 for the 640 acre section bring the total land rights owned by Quest to 1,920 acres. The new lands are 100% owned by Quest and carry no over riding royalties other than Provincial Crown royalties. Acadia Project Specialist, Richard Johnson P.Eng stated: "The new land is important because the Viking sand found in the 10-22 well shows that the sand pool is larger than originally mapped. An abandoned well on the newly purchased section shows gas in the Viking log. Geological mapping now indicates that more reserves are present on section 23 than the original maps indicated," Richard Johnson further stated, "The high reservoir pressure and the thick sand found in the 10-22 well form the basis for the increased reserves shown in the Independent Engineering report. This new data has more than doubled their original reserve estimate. A 3-D seismic program will permit the optimizing of further wells on this sand body. It is anticipated that we will see similar gas pressure and high deliverability on new wells."
ABOUT QUEST OIL CORPORATION
The Company is committed to the exploration and development of economical oil and natural gas reserves globally. 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.
Safe Harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Quest Oil Corporation has little or no control.