HOUSTON, Sept. 27, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL), provides the following update for its Acadia North and Empress development and production schedule.
Acadia North Field
Section 6-23-25-2w4m
Quest recently acquired a lease of 640 acres of prime oil and gas rights from the Alberta Government as stated in a news release dated September 09, 2005. This section of land is immediately east and contiguous to Quest's recently completed "10-22" natural gas well. The Petroleum and Natural Gas (P&NG) Lease includes all rights from the surface to Precambrian Basement. Quest Project Advisor, Richard Johnson has analyzed historical data and geophysics of the lease and has concluded following:
1) Geological mapping shows the Viking gas reservoir that the "10-
22" well tapped into continues to the east and is present under
section 23.
2) Gas well logs on an abandoned well on the new land, 6-23-25-
2w4m, show two meters of natural gas pay in the Viking sand.
Data determined by drilling "10-22" identifies a virgin gas
pool that will enable significant production. It is Quest's
intent to immediately re-enter the old well bore and perforate
this reservoir as soon as a service rig is secured. Once Well
"6-23" is perforated, the Company will perform necessary
testing to determine down hole pressure and capable flow rates.
The well head has not been de-commissioned and still remains
tied-in to the AltaGas pipeline.
3) Gas well "6-23" produced gas from the Glauconitic sand, a
reservoir that is 140 meters deeper than the Viking reservoir,
therefore additional potential exists on this land for further
work on the lower potential gas zones.
Section 10-22-25-2w4m
The "10-22" gas well equipment and tie-in AFE of $156,000 was received and paid in full to Operator Transaction Oil and Gas Services. Transaction has been working through the necessary approvals and budgeting for equipment and trenching contractors required for the "10-22" tie-in. The Company is scheduled to be in production by mid-October 2005. According to Richard Johnson P.Eng, "The regulatory requirements have been cleared and construction of the surface lease facilities will begin this week, all well head equipment and piping is available and ready for delivery to the lease. A separator and storage tank are ordered and will be shipped to the lease the following week".
Production rate for well "10-22" will be 2 mmcf/d. Gross revenue is estimated at $735,000 monthly.
Section 15-34-25-2w4m
The 15-34-25-2w4m gas well was evaluated last week for continuity of the Viking gas zone over a span of two mile spacing between "15-34" and "10-22". Based on the pressure test conducted, results show that the reservoir remains consistent over distance and contains larger amounts of natural gas than what the Company and its advisors previously considered. Pressures at the well head have remained strong since drilling was completed in July and internal flow test indicate a .5 mmcf/d well may be achievable from the Viking. The Company has requested a third party extended flow test be undertaken when crews are again in the area. Cameron King, President and CEO, states, "As the Company further analyzes the geology of the region and works its way through historical production logs proves we are uncovering data showing positive indications of gas in the shallower zones, therefore before well "15-34" is brought on-line we will be perforating the higher Milk River zone for an additional productive gas target to determine flow and economics."
Empress Property
Section 12-15-24-2w4m
The 12-15-24-2w4m gas well was cased to total depth of 3,200 ft to the basement of the Bakken gas pool. The well is currently shut-in and is waiting for a service rig to move on site to initiate the completion program. Richard Johnson P.Eng. adds, "The "12-15" well is located 1/2 mile east of a gas well that was recently completed, tested and awaiting tie-in. The Bakken, Banff and Detrital tested gas in that well. The Bakken sand in the "12-15" well looks similar on logs to the off-setting well. The Banff and Detrital have changed character but a potential new, Basal Mannville sand occurs in the Quest well."
The Company is currently waiting for the finalized AFE from its Operator "Transaction" to submit funds to secure the necessary rig and equipment. In the meantime the Company has the pipeline right-of-way being surveyed to the lease and capital budget being prepared.
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.