1. Corporate
Presentation
October 2006
Questerre Energy
Corporation

2. Forward Looking Statement
Presentation Outline
Company Overview
Asset Overview
Management
Capitalization
2005/2006 Highlights
Area Overview
St. Lawrence Lowlands, Quebec
Beaver River Field, British Columbia
Alberta
Outlook
Forward Looking Statement
This presentation contains forward-looking information. Implicit in this information are assumptions regarding oil and natural gas prices, production, royalties and expenses that, although considered reasonable by Questerre at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in Questerre’s plans, changes in commodity prices, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations.
There is no guarantee by Questerre that actual results achieved will be the same as those forecast herein. Estimated values in this presentation do not represent fair market value.

3. Company Overview Looking for “big gas in big markets”
Talisman and Transeuro have farmed in on Questerre generated natural gas prospects
Based on Questerre ideas, our shareholders are exposed to a portfolio of opportunities to discover world-scale natural gas fields with access to markets
Company is underpinned by a growing base of value with exit production for 2006 expected to be at least 1,600 boe/d

4. Asset Overview Diversified portfolio of assets
St. Lawrence Lowlands – large scale exploration with four discreet prospective plays
Beaver River Field – tight gas resource play plus deep exploitation play
Alberta – conventional E&P targets
Management of downside risks
High-impact projects funded by partners
Conventional projects in Alberta provide growing cash flow base
Central Alberta
St. Lawrence
Lowlands
Beaver
River
Southern Alberta

5. Management
Management has extensive experience in large scale international E&P projects, unconventional reservoirs and conventional smaller scale Alberta production
Founders of CanArgo Energy Corporation (CNR:AMEX,OSE) and Flowing Energy Corporation (Production growth : 0 to 3,000 boe/d in three years; sold to Daylight Energy Trust Ltd.)
Management and Directors have invested approximately C$12 million and own 21% of the Company

6. Capitalization Terrenex Acquisition Corporation 10,698,785 8%
Directors & Management 18,622,639 13%
Terrenex Acquisition Corporation 10,698,785 8%
Norwegian float 70,175,890 50%
Canadian float ,625,270 29%
Total 141,122,584
Options (Avg. exercise price C$0.49) 11,013,752
Q2 net positive working capital balance of $13,000,000
Positive cash flow for Q2 of $ 1,083,000

7. 2005 Highlights
Company recapitalized in 2004 to address working capital deficiency resulting from an unsuccessful drilling project
Significant progress made with both high-impact projects and development of a conventional asset base in 2005
Secured farm-in partners to fund both high-impact projects
Established a reserve base through drilling of 17 wells with an 88% success rate including a significant new pool discovery in Southern Alberta
Increase in NPV-10 of 2P reserves (proved + probable) from C$3.9 million to C$22.1 million (900,000 boe)
Exit rate of 170 boe/d on-stream plus over 630 boe/d behind pipe

8. 2006 Highlights & New Developments
Talisman commits to spud test well on Quebec acreage
Seismic acquired by Talisman confirms work to date and advanced two additional zones of interest
First well to spud before the end of 2006 to test four prospective zones
Gas discovery at Beaver River in the Mattson Besa River tight gas resource play
Discovery well produced at 4.4 mmcf/d (over 700 boe/d) with compression
First well of a five well program spud this fall
Successful delineation drilling program in Vulcan and new core area in Westlock
Seven wells drilled to expand new Mannville oil and gas discovery in Vulcan
Established Westlock as a new core area – multiple horizon, low cost drilling targets
Completed acquisition of Stride Energy Ltd., adding 227 boe/d and 26 sections (16,640 gross acres) in Westlock
Concluded 33 section (21,210 gross acres) farm-in with Apache Canada in Westlock
Currently producing over 1,000 boe/d with significant shut-in gas

9. St. Lawrence Lowlands
Eastern Canada

10. St. Lawrence Lowlands
Talisman to operate drilling of one of the highest potential exploration wells to be drilled in North America in the recent past
Four prospects to be tested with a single well with primary target the Trenton Black-River
Talisman is North America’s expert in the Trenton Black-River play and is currently producing approx. 20,000 boe/d from this play across the border in New York
Large acreage position with multiple prospective horizons has multi-tcf potential
Quebec
St. Lawrence Lowlands
New York
Numerous Talisman discoveries with initial test rates of mmcf/d

11. Talisman Farm-in Terms
Talisman has the right to drill up to four wells to earn 75% interest in 700,000 acres
Questerre will retain a 21¼% working interest in the land and receive a 4¼% royalty - equating to a 30% economic take
Questerre farmed-in on additional 300,000 acres held by Gastem Inc. for a 50% interest
Total land position of over 1 million acres
Questerre – Gastem Farm-in
Talisman – Questerre Farm-in
Quebec
Montreal

12. Prospect Potential
Primary target is Trenton-Black River dolomite – 300 Bcf potential
Secondary target is Utica shale –tight gas play – 300,000 acres
Third target is Potsdam sandstone Bcf potential
Fourth target is fractured basement play

13. Illustrative Value of 300 Bcf Discovery
Alberta Quebec
Revenue ($4/mcf AECO - $4.5/mcf NYMEX) $1,200,000,000 $1,648,000,000
Less
Royalties (27% AB/12.5% PQ) (324,000,000) (206,000,000)
Transportation ($0.10 AB/$0.10 PQ) (30,000,000) (30,000,000)
Operating & Processing ($0.65/mcf) (195,000,000) (195,000,000)
Capital (50 wells plus facilities) (180,000,000) (180,000,000)
$ 471,000,000 $ 1,037,000,000

14. Beaver River Field
Western Canada

15. Beaver River Field Two primary zones of interest
Tight gas resource play in the Besa River/Mattson - naturally fractured siltstones and shales
Hydrothermally dolomitized Nahanni –Infill/ new compartment drilling opportunities on a discovered field with only 15% recovery to date
Field already tied in and producing
Infrastructure and gathering system with replacement cost over C$30 million

16. Besa River/Mattson Potential
Discovery well capable of over 4.4 mmcf/d with compression
800 meters of interbedded sandstone, siltstone and shale
Orange outlines prospective area of 7,500 acres (12 sections); yellow outlines area where highest natural fracturing believed to occur; 48 locations based on ¼ section spacing
Independent study completed on Beaver River core indicates OGIP ranges between 200 Bcf – 495 Bcf per section – modern completion techniques key to maximizing recovery

17. Nahanni Potential
Amoco abandoned the field after six initial wells in Nahanni produced on average 30 Bcf/well (185 Bcf or 15% recovery); additional wells were uneconomic at $0.25/mcf
Independent resource report by McDaniels determined field has
120 Bcf in possible reserves
540 Bcf in resource potential
1,433 BCF OGIP
12 new locations identified on reprocessed 3-D seismic survey (10 to 45 Bcf potential per location)

18. Recent Developments A-2 discovery well exceeds expectations
Tested at 1.64 mmcf/d against no back pressure
Currently producing over 3 mmcf/d against high Duke mainline pressure (1,000 psi)
Continuing to cleanup with no measurable decline
5 well program commenced with spud of A-7 well in mid September/appraised
Partner to pay 100% of two wells after which QEC and TSU are 50/50

19. Alberta, Western Canada
Central Alberta
Westlock
Southern Alberta
Vulcan

20. Vulcan, Southern Alberta
50% interest in significant discovery in one gas and one oil pool in Vulcan
Oil is 40 degree API and receives premium pricing; natural gas is rich in liquids
In fill development locations in the oil pool
Upper Mannville potential plus CBM

21. Westlock, Central Alberta
Land position of over 50 sections with multi zone potential
Land includes 35 section farm-in on Apache on 100 for 70 basis
Relatively shallow wells with lower drilling, completion and tie-in costs
Seven wells drilled to date; six cased as potential producers
2 to 4 additional locations for remainder of 2006

22. Alberta Operating Statistics
Quarter ended Year ended June 30, 2006 June 30, 2006
Average daily production boe/d 464 boe/d
Prices realized per BOE $ $39.48
Royalties per BOE $ $ 9.84
Production expenses per BOE $ $11.72
Operating net back $ $17.92
G&A per BOE $ $ 5.46
DD&A per BOE $ $16.62
* Includes some production from Beaver River in Q2

23. Outlook 2006
Talisman operated exploration well in Quebec to test four zones will commence before year-end
First of five well program is currently drilling for the Mattson/Besa River to assess gas discovery made last winter
Work has commenced for a Nahanni well at Beaver River to be spud in Q1 of 2007
In fill wells to be drilled in the Vulcan oil pool in Q4
2 to 4 multi-horizon exploration wells to be drilled in Q4 at Westlock
2006 exit target of over 1,600 boe/d does not include any production from Beaver River well being drilled now
Running rate cash flow at Dec 31, 2006 based on $5 and $6/mcf natural gas is $6 million and $8.5 million respectively

24. Two Year Charts
TSX OSE
Average volumes of over 100,000/day on TSX and over 1 million/day on OSE

25. Calgary, Alberta T2P 0Z5 Canada
1580 Guinness House
727 Seventh Avenue SW
Calgary, Alberta T2P 0Z5 Canada
Tel : (403)
Fax : (403)
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