ARLINGTON, Texas, June 30, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL) (www.questoil.com) announces the Nettie Gardner lease was purchased June 29, 2005. Lease documents were registered in the McCullouch County, TX county clerk's office.
The Nettie Gardner lease is comprised of 116 acres, which forms the southernmost extension of the EXOC Field discovered in 1976 by the Bishop-Biemer-1 well. Production occurs from the Jennings gas sand and the Gardner sandstone for the oil at a depth of approximately 1,000 ft to 3,000 ft.
Estimated capex for the initial designed work program is estimated at $323,500, which entails drilling 5 new wells, 3 oil and 2 gas, and work over of the existing gas well. The estimated cost to drill and complete one well is $60,000, for a total of $300,000. The estimated cost for work over is $23,000. Production rate is estimated at 15 bopd/well and 35mcfpd/well, 3 oil wells and 3 gas wells producing an estimated 1350 bopm and 3150mcfpm. Average projected annual net return, after lease operating expense and taxes, at $50/barrel and $7.5/mcf is approximately $10,300,000 over the life of the production. This is based on a 75% net revenue interest to Quest Oil.
Quest Oil Corporation is also offering its shareholders to listen to an AudioNews(tm) interview with Cameron King MBA, CFO, Director that can be accessed through the http://www.audiostocks.com website.
Acadia North Project Update
Transaction Oil and Gas, the operator of the Acadia North Project advised today the Company has received a drilling permit for South 10-34-25-26 W4M; scheduled spud date is July 08th, 2005. Due to recent weather conditions, rig availability has been limited. The Company has completed AFE of $471,000 for well 10-34-25-26 W4M; funds committed include completion and tie-in costs.
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.
ON BEHALF OF THE BOARD Quest Oil Corporation Mr. Cameron King MBA, CFO
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.