ARLINGTON, Texas, Feb. 15, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL) (www.questoil.com) today announces that it has completed the acquisition to acquire a 100% working interest in the two-section Acadia North prospect, located in Alberta, Canada. A third party reservoir engineering firm "Chapman Engineering" confirms reserves proved and probable of 3 BCF with a revenue value of $18 million.
Under the terms of the farm-in agreement with Moraine Resources Ltd., Quest Oil must reprocess 8km of trade seismic line with the option to drill a new well into the proved reservoir sand. A second well can be drilled on the second section after evaluating the first well, the 100% Working Interest is earned on the sections when the test wells are drilled. Budget forecasts for of drilling, completion and tie-in on a per well basis is estimated at $500,000. Following the required leasing, surveying, licensing and site preparation, Quest Oil plans to commence drilling upon the receipt of necessary licensing and permits.
The gas bearing zone of interest at the Acadia North prospect is the Viking Sandstone reservoir, which is located at a depth of approximately 1600 feet. This zone is believed to contain a 15 foot thick gas bearing Upper Viking Sand structure. The Viking reservoir in the prospect area was first produced in 1978, with over 1BCF gas being produced out of a possible reserve potential of 12 BCF with a potential revenue source of $48 million.
Quest Oil's Acadia North prospect is located approximately 160 miles due east of the City of Calgary, Alberta. The prospect lands are comprised of Section 22 and 34 of Twp 25 Range 02 W 4M.
About Quest Oil Corporation
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided through key strategic alliance partnerships. Participating in the development of North American oil and gas resources is becoming more necessary in the upstream industry and is consistent with Quest's growth strategy going forward.
ON BEHALF OF THE BOARD Quest Oil Corporation
Mr. Roderick Bartlett, President and CEO
To find out more about Quest Oil Corporation (OTCBB:QOIL), visit our website at www.questoil.com.
This release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be 'forward-looking statements.' Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as 'expects,' 'will,' 'anticipates,' 'estimates,' 'believes,' or statements indicating certain actions 'may,' 'could,' or 'might' occur.