Questerre Energy Corporation reported that commissioning has been completed for the joint venture central compression and condensate stabilization facility located at 16-07-63-5W6M in the Kakwa-Resthaven area. Questerre has a 25% working interest in this facility. The 16-07 Facility was constructed in late 2013 and commissioned over the last thirty days.

It will address the high line pressures associated with delivering natural gas and liquids from the joint venture wells to a third party processing plant. It will also stabilize wellhead condensate from the wells prior to transportation to the sales pipeline. The 16-07 Facility has been successfully tested at up to 14 MMcf/d of natural gas and associated condensate with design rates for 15 MMcf/d of natural gas and 3,000 bbl/d of condensate.

Currently four joint venture wells, the 13-17 Well, the 14-30 Well, the 03-19 Well and the 05-23 Well are producing through the 16-07 Facility at flush rates of up to 8 MMcf/d of natural gas and 1,200 bbl/d of condensate. The operator anticipates that additional wells will be tied-in and placed on production through the 16-07 Facility shortly. The operator recently updated the status of current and future joint venture wells.

It reported that completion and initial flow-back has been finalized on the 16-25-63-5W6M well ("16-25 Well"). During a short production test, the 16-25 Well demonstrated initial deliverability and condensate yields similar to the previously drilled wells on the joint venture acreage. The Company notes that initial production rates are not indicative of long term performance or ultimate recovery.

Questerre has a 25% working interest in this well. Drilling operations were recently completed on the 16-17-63-5W6M well ("16-17 Well") to a total measured depth of 5191m. Drilled from the same surface location as the 13-17 Well, drilling was completed on schedule and budget in 42 days from spud to rig release.

Completion operations are now underway. Subject to results, the 16-17 Well should be tied-in and commence production in mid-February. Questerre has a 25% working interest in this well.

The operator further reported that drilling is underway at the 15- 30 -63-5W6M well, the first of two wells to be drilled from the 3- 30 -63-5W6M surface location. The 15-30 Well was spud on December 31, 2013 and is expected to take approximately 45 days to reach total depth. The next well to be spud from this location, the 02/14-30 Well, will target a prospective interval in the Upper Montney.

Once drilling is finalized on the 02/14-30 Well, the operator plans to complete both wells by April 2014 and have them tied-in and on production the following month. Questerre will hold a 25% interest in these wells.