Questerre Energy Corporation

As a shareholder, I share your frustration with the current share price. As you may know, we have been looking at a number of opportunities that are primarily unconventional oil. This includes oil shale and shale oil projects with a minimum 100 million barrels of oil in place. As you can imagine, this space is becoming quite competitive so we are carefully evaluating projects that we believe can add value to Questerre. With our cash on hand, we need to ensure that this is carefully invested to create shareholder value.

Regarding book value, we currently have about $114 million in cash as of the end of the third quarter. Our 2P reserves, primarily in Antler had a value of $60 million at year end. We have since drilled almost 15 gross wells to grow this production. Net of the current year production, we believe the additional drilling will improve our reserves. Excluding any value for Quebec and based solely on our cash and the producing assets, our value exceeds our current market capitalization.

We have also picked up four net sections for the Montney in Alberta targeting the liquids rich window. We are evaluating this acreage with an aim to drill a well.

Jason

Now mind you they are still evaluating, so don't get caught up on the size of the play or what we could possibly get. Nothing is for sure until we actually acquire it, but as I said before they are looking for value projects that could have a big impact. This share price decline is a complete joke. I asked him about the book value of the company (even though it's around $1 when you get the research from TD etc), and he agrees.

So hopefully they get something going, but he emphasizes using that money efficiently as I mentioned before. It's not there to just blow away in times like this.

Rocco :)