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October 12, 2006 - Questerre finalizes payout on insurance claim

Calgary, Alberta - Questerre Energy Corporation ("Questerre" or the "Company") (TSX, OSE: QEC) announced that it has received $1.05 million as full and final settlement of the insurance claim for damages sustained in the previously reported fire at the Beaver River Field in June 2005.

The claim relates to the costs incurred in replacing the staff quarters, workshop and equipment damaged in the fire. The amount is net of a $25,000 deductible, representing the Company's only unrecoverable costs for this incident.

Michael Binnion, President and Chief Executive Officer, commented, "I am pleased that we have received the maximum amount of our coverage under this claim. Our field operators worked diligently last summer to ensure the reconstruction was completed quickly and cost-effectively. The new modular living quarters and shop facilities provide an excellent scalable base to support the on-going development of the Besa/River Mattson horizon at the Field."

Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

For further information, please contact:
Michael R. Binnion, President
Tel: (403) 777-1185
Fax: (403) 777-1578
Email: info@questerre.com
Web: www.questerre.com