British Columbia

The Greater Sierra Region

The Greater Sierra region lies approximately 100 km east of Fort Nelson, British Columbia. The primary zone of interest is the Devonian Jean Marie at a depth of approximately 1400 metres. The region is also prospective for shallower zones including the Mississippian Debolt and deeper Devonian Keg River, Slave Point and Pine Point formations as well as the Horn River shale.

In addition to its non-operated producing assets in this area, Questerre holds 29,313 net acres of undeveloped land in this region prospective for multiple intervals.

Low natural gas prices and material third party gathering and processing charges led to Questerre suspending activity in this area in 2011. In light of continued weakness in natural gas prices, the Company has no plans to invest additional capital in this area in 2012.