ARLINGTON, Texas, Feb. 28, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL) has signed a letter of intent with Brokenstraw Oil Development Co., (Brokenstraw) to purchase all assets for a combination cash and stock purchase transaction. The transaction is scheduled to close on March 21, 2005, and is subject to QUEST obtaining the necessary financing, and the execution of a definitive Purchase and Sale Agreement. The Company's website; www.questoil.com will provide additional corporate information.
The assets to be acquired will comprise all of Brokenstraw's interests in the Warren County, PA, including property and five (5) leases totaling 1010 acres, 215 wells, surface equipment, gathering and surface facilities, as well as all geological engineering, land and data records since production in the early 1970's. Independent asset evaluation prepared by Glover Petroleum Consultants reports that the prospect reserves contain "2,086,963 Bbl of oils to have a $45.00 per Bbl evaluation of $93 Million and the 792,102.6 MCF of Natural Gas to have a $6.50 per MCF evaluation of $5 Million or a total undiscounted evaluation of $98 Million."
Quest's President and CEO, Rod Bartlett comments, "We are concluding our due diligence to assure there are no outstanding liabilities that threaten the financial viability of Brokenstraw. The Quest team is working diligently on this prospect with all intentions of adding production and concluding the purchase in the immediate future."
DEVELOPMENT PROGRAM
Upon completion of the acquisition of the Brokenstraw assets, Quest intends to commence an aggressive development program. The program will focus on upgrading the infrastructure of Brokenstraw and utilize production enhancing recovery technologies. The immediate development program, which is in the process of being reviewed by Quest's management and the advisory board, will include the bringing on line of 75 wells for 2005 and the implementation of a step-out drill program for an additional 60 oil and gas wells.
ABOUT QUEST OIL CORPORATION
Quest Oil Corporation is an emerging oil and gas company committed to the exploration and extensive development of oil and natural gas reserves throughout North America. Quest management is focused on an acquisition program targeting high quality, low risk prospects such as Acadia North in eastern Alberta.
ON BEHALF OF THE BOARD Quest Oil Corporation Cameron King MBA CFO/Director
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.