Questerre Energy Corporation 2008: Year in Review

What a difference a year makes Major shale gas discovery made in Quebec Grew valuable expertise in shale gas plays Achieved early success on B.C. Liard shale gas play with well on production at 5 mmcf/d Cash flow over $17 million exceeded guidance Replaced over 150% of 2008 production on a 2P basis Increased financial strength with net working capital of over $50 million Major shale gas discovery made in Quebec Business plan has proven successful

2008 Objectives Participate in the drilling of several wells in the Lowlands to test the Trenton Black-River and shale gas prospects Drill an additional 5 (2.5 net) wells in Antler and evaluate the PackersPlus stimulation technique to increase production and ultimate recovery Commence full production from the Mannville I Pool in Vulcan Build inventory of over 50 drilling locations Maintain similar production levels as 2007 with materially higher netbacks Met all 2008 objectives

Operating and Financial Results Cash Flow$17.29 million$10.22 million Production Crude Oil and Natural Gas Liquids (bbls/d)385 (33%)176 (13%) Natural Gas (mcf/d)4,761 (67%) 7,282 (87%) Total (boe/d)1,1781,390 Revenue ($/boe) Royalties ($/boe) Operating Expenses ($/boe) Operating Netback ($/boe) Working capital ($)54.31 million10.08 million 2P Reserves 2.92 mmboe2.34 mmboe DebtNilNil Strengthened financial position

Market Liquidity Daily trading volumes increased from 0.78 million shares in 2007 to 5.34 million shares in 2008 Added to Oslo Bors Benchmark Index Increased analyst coverage by 7 firms to 12

St. Lawrence Lowlands, Quebec “All Hail the Triumphant” Copyright 2008 Daedalus Designs Inc. Courtesy Kinsman Robinson Galleries, Toronto in association with Master’s Gallery Ltd., Calgary

Why Shale Gas in Quebec Favorable fiscal terms Well defined deep fairway with IGIP “incredible gas in place” Large land position with drilling inventory measured in decades Lorraine Shale

Favorable Fiscal Terms Canada’s second largest natural gas market- over 0.5 Bcf/d Additional estimated mmcf/d capacity on TCPL (seasonal) Royalties of 10% to 12.5% Realized natural gas prices in GazMetro system are at a $0.60 premium to NYMEX GazMetro distribution system confirmed availability for tie-ins with 9- month lead time Pipeline infrastructure in Lowlands

Well Established Geology Unstructured Structured Play Fairway Utica Structure Map Schematic Cross Section of Lowlands

Dominant Land Position in Fairway AcreageGrossNet Questerre - TLM (~25% % GORR)719,788206,746 Yamaska – FST/GMR (20% working interest)113,45322,691 St. Jean – GMR (56% working interest)181,255107,003 Total1,014,496336, net sections (over 1,200 sq. km) Land values validated by Canbriam/Suncor farm-in Quebec City Montreal 2009 Activity 2008 Activity 2007 Activity

IGIP – Incredible Gas in Place SYSTEM MIDDLE/UPPER ORDOVICIAN GROUPFORMATION INDIAN CASTLE TRENTON UTICA DOLGEVILLE FLAT CREEK BASALLORRAINE MIDDLELORRAINE Stratigraphy Discovered resource potential over 35 Tcf on Questerre net acreage

Multi Tcf Potential Assumptions Estimated discovered resource of 93 Bcf/section for Utica and 120 Bcf/section for Lorraine based on TLM, FST & QEC estimates Recovery factors based on 100 acre spacing for Utica and 80 acre spacing for Lorraine Potential contingent resource based on 70% prospectivity factor plus 50% land utilization/risk factor resulting in 35% of net acreage being developed Shrinkage factor of 5% includes fuel gas Questerre 305,849 net working interest acres (107,047 utilized) RecoveryGross Bcf/wellGross Bcf/wellNet RecoverableNet RecoverableTotal UticaLorraineUtica (Tcf)Lorraine (Tcf)Tcf 10% % % % Questerre 30,591 royalty interest acres (10,707 acres utilized) 10% % % % Note: 1 trillion cubic feet of gas is 167 million barrels of oil equivalent (BOE)

Realizing the Potential Every shale play has its own learning curve and requires unique, innovative solutions Acquire a statistically significant set of results and create repeatability by testing one variable at a time Very high beta on individual well results; top half of wells pay for everything Persistence and technology inevitably lead to improved results Production data courtesy of Tristone Capital/IHS

Moving up the Learning Curve in 2008 Validated giant resource potential “IGIP” – St. Francois du Lac #1 test, April 2008 Frac’d rock successfully and achieved sustainable gas flows – Gentilly #1 test, August 2008 Designed and carried out first prototype horizontal well completion Frac Fluid Containment System Gentilly #1 Fracture Stimulation

Forest Oil Horizontal Well Results Sustained rates of 100 – 800 mcf/d Different intervals tested for frac effectiveness Rock breaks well – sufficient rock volumes stimulated – frac geometry confirmed by microseismic Good pressure gradients with high pressures encountered Four stage prototype – 8 stage production wells would double stimulated rock volumes Well cleanup times are slow indicating potential issues with conductivity to wellbore Frac operations on Forest horizontal wells Micro-seismic used to validate frac geometry (Image courtesy of Pinnacle Technologies Inc.)

Measuring up to a Proven Shale Play Initial results are well up the first year learning curve Fayetteville production data courtesy of Southwestern Energy corporate presentation Quebec results are estimated 30-day equivalent rates Specific wells and intervals are confidential Quebec Trend Line Southwestern Trend Line Year 1Year 2Year 3Year 4

Quebec Expected Timeline Original timeline is generally being met with any delays due to market conditions

Proposed Pilot Pad Locations Outlook for 2009 Add to database – Finalize testing of Gentilly #1 and La Visitation #1 well – Test St. David #1 – Drill & test St. Edouard #1 Test one variable at a time – Re-enter and re-frac Yamaska wells Pilot 6-well pad – Acquire seismic data over several potential commercial drilling pads – Obtain regulatory approval to commence drilling of 6 well production pad – Commence approval process for tie-in to GazMetro distribution system Drilling rig for Forest horizontal wells

Liard Shale Northeast British Columbia

Liard Shale Harness and apply shale learning curve A-5 well has encouraging results – 5 mmcf/d on production Seeking partners to gather base data to rigorously evaluate Liard shale potential Beaver River project adding to our internal shale expertise and proves benefits of following learning curve Mississippian shale/siltstone sequence Beaver River Schematic cross section

Conventional Assets Antler, Saskatchewan Validated horizontal multistage wells to increase recovery Over 50 drilling locations Flexibility to accelerate development drilling based on higher oil prices Greater Sierra, Northeast BC Completed drilling program and 3-D seismic program in 2008 Several deeper prospects identified using 3-D seismic survey 50 drilling locations - Future drilling programs to leverage higher natural gas prices Vulcan, Southern Alberta Focus on operating efficiencies to further improve netbacks Oil Battery at Antler Drilling Rig at Greater Sierra

Company Outlook

2009 Outlook Quebec Complete drilling and testing of multi-zone deep vertical wells with Talisman Refine completion design and re-enter and re-complete Yamaska horizontals Acquire seismic over potential pilot areas with Talisman Northeast British Columbia Validate Liard shale play rock properties at Beaver River Field Conventional Assets Minimal capital spending on conventional assets - Expenditures focused on short payouts rather than rates of return

1650 AMEC Place 801 Sixth Avenue SW Calgary, Alberta T2P 3W2 Canada Tel: (403) Fax: (403)