Questerre Energy Corp (Canada) T.QEC

RE: Very disappointed...

[coolbe]

APPENDIX A - The Evolution of the Utica Shale

Chronology of Key Events

~450mm Utica shale deposited

years ago

1950’s Six of twelve wells on the St. Jean permit just 30 km southeast of

Montreal were drilled in the 1950s, the most significant of which (the

Eastern Canada No. 1 well), was assigned estimated potential gas

reserves of two to three Bcf. In 1972, Shell drilled a deep well called the

Saint-Armand No.1 just offsetting the St. Jean permit.

1973 First notable Utica gas test – the Shell St. Francois No.1 well

completed at a depth of 979 meters in the Utica shale delivered gas to

surface on DST test at a rate of 265 mcf/d. Initial production rate was

4.6 mmcf/d at 3,543 psi – significantly over-pressured.

2000 Questerre began acquiring land prospective for the Utica shale

2002 Junex began acquiring land prospective for the Utica shale

2004 Gastem acquires the Yamaska permits

2005 Questerre executed farm-in agreement with Talisman on Gentilly

permit. Same year Questerre farmed-in on Gastem’s interests in the St.

Jean blocks.

2006 Junex executed a farm-in agreement with Forest Oil on the

Becancour and Contrecoeur permits.

Dec 2006 Talisman spuds the Gentilly No.1 well – TVD 2,600 meters. Questerre

pays 10.5% to earn a 17.5% WI plus has a 5% GORR (Gross Over-riding

Royalty).

Jan/Feb 2007 Gastem and Questerre enter LOI re: Yamaska property and AMI for any

projects wherein each must offer the other a 20% WI within the SLL

region.

Forest Oil farms-in on Yamaska property – must spend $10 million to

earn 60% WI. Questerre holds a 7.5% GORR convertible into 20% WI.

Gastem farmed into Questerre’s interests on a 50/50 basis and is also

subject to a 7.5% convertible GORR payable to Questerre.

Summer 2007 Gastem drilled two pilot vertical test wells, drilled to depth of ~1,800

meters; these are the St. Francois-du-Lac No.1 well and the St. Louis de

Richelieu No.1 well, both on the Yamaska permit to test Utica and

Trenton Black River zones.

Dec 2007 Gastem spuds the first Joly permit well and the Joly No. 4 well -

under farm-in with Intragaz, must drill two wells to earn 50% interest in

Joly property and 49% interest in two gas storage facilities.

Feb 2008 Gastem enters into farm-in on Utica Energy LLC permits in New

York State - must drill five vertical tests targeting the Utica and

Marcellus zones to earn 65% interest in 29,000 acres, subject to 5%

GORR.

April 2008 Forest Oil announces:

1. Recompletion of two vertical wells drilled in 2007 (the Gastem

Yamaska permit wells), tested at rates of up to 1 mmcf/d in

December 2007

2. Plans to drill three horizontal wells summer 2008 and continue

vertical well pilot

3. Estimate of 4.1 Tcfe of net resource potential on net 269,000 acres

Gastem announces initiation of Phase I of Utica program in New York

State - drill and frac three vertical wells. Also plans for Phase II - two

vertical & one horizontal well in H2/08.

May 2008 Talisman elects to drill three option wells to earn 75% WI in the

Gentilly permits

Talisman announces Quebec CapX program of $100 million to $130

million

Summer 2008 Forest/Questerre/Gastem to drill and complete three horizontal multistage

frac wells on the Yamaska permit

Forest/Junex to drill horizontal well at Becancour & drill a test vertical

well at Contrecour

2008/2009 Talisman/Questerre to drill three vertical and several horizontal pilot

wells on the Gentilly permit

2010 Forest/Questerre/Gastem to move to full scale development on Yamaska

permit.

Talisman/Questerre to move to full scale development on Gentilly

permit.

Kim Page, [phone]; [e-mail] May 28, 2008 – 17

Dave Hammond, [phone]; [e-mail]