Antler, Saskatchewan

The Antler area is approximately 200 km from Regina in southeast Saskatchewan. The primary target is light oil from the Bakken/Torquay formation, a dolomitic siltstone shale sequence at a depth of between 1050 metres and 1150 metres.

Improving weather and equipment availability led to a resumption of drilling and completion operations in Antler.

During the third quarter, Questerre drilled four (3.02 net) horizontal wells and completed six (3.58 net) horizontal wells. This included two (1.00 net) wells drilled during the first quarter and one (0.50 net) well from 2010. Work also began on an expansion of the main battery and the construction of a pipeline to tie-in the recently drilled in-fill and step-out wells.

To expand its presence in the area, the Company concluded an agreement to acquire approximately 100 bbl/d of light oil production and 6,942 acres of undeveloped land proximate to its existing assets. The proved and probable reserves assigned to this asset by an independent reserve engineering firm as of March 31, 2011 is 419 Mbbl representing only six percent of the oil in place. The cash consideration for this acquisition was 13.25 million.

Subject to field conditions and equipment availability, during the fourth quarter of this year Questerre plans to drill five (3.33 net) additional wells.