Corporate Presentation June 2005 Questerre Energy Corporation

Corporate Presentation June 2005 Questerre Energy Corporation

Portfolio Overview • Growth in four producing areas in British Columbia and Alberta underpins company cash flow and market value • Several high impact wells in Canadian frontier assets with upside potential to achieve 20, 000 boe per day by 2010 • Risk reduction strategy through selective partnerships

Projects • Southern and Central Alberta – plays prospective for multiple horizons – small production but low cost with high net backs of $25 - $30 per barrel • Beaver River Field Shallow Zone, British Columbia – multiple sands tested but never produced - lower cost and easier to put on production • • Beaver River Field Deep Zone, British Columbia – discovered gas reservoir with potential recoverable reserves between 20 – 90 million boe St. Lawrence Lowlands, Quebec - 85% interest in 287, 915 hectares (1, 100 sections) – proven play with drillable prospects with over 35 million boe (200 bcf) in potential reserves each Beaver River St. Lawrence Lowlands Central Alberta Southern Alberta

Excellent Market Conditions • Canada is #1 supplier of oil and gas to US • North American pipeline network allows Canada to receive US pricing • Canadian production has exceeded new discoveries for several years • Strong demand limited supply leads to high prices • Reserves in Canada are some of the highest value in the world – production sold at an average price of $45, 000 per producing boe in 2004

Management & Directors • Management has extensive experience in large scale international E&P projects, unconventional reservoirs and conventional Alberta production • Management and Directors have invested approximately C$12 million and own 26% of the Company • Clay Riddell, Chairman and controlling shareholder of Paramount Oil & Gas Ltd, one of the large independent E&P companies in Canada, owns 7% of the Company

Why Secondary Listing on Oslo Bors • Investors in Norway are well versed with energy sector – Particular understanding of high impact exploration and development projects • Limited number of exploration and production companies on Oslo Bors – Window on the junior markets in Canada for retail and institutional investors • Oslo Bors is one of the most liquid and cost effective markets in Europe • Oslo Bors has been actively marketing itself as “energy stock exchange” • Provide liquidity for existing Norwegian investors, currently holding 39% of Questerre common shares (excluding insiders)

Alberta, Canada

Alberta Central Alberta Westlock Southern Alberta Vulcan Southern Alberta Parkland

Illustrative Production Profile • Existing corporate production of 130 boe per day • First quarter drilling tested at 170 boe per day • Participating in seven wells this summer • Multiple follow-on drilling locations identified on Company lands • Guidance of 500 boe per day by year end; 1, 000 by 2006

Parkland Area • Plays well defined by a 3 -D seismic survey covering over 64 square kilometers • Primary plays are prospective for 0. 2 – 0. 8 million boe (1 -5 Bcf) per well • Questerre currently holds a 50% interest in 960 hectares sections of land • Discovery well tested, to be restimulated this summer • Total well costs of approx. $1 million dry and abandoned

Vulcan Area • Questerre currently holds a 50% interest in 1, 280 hectares • Total well costs approximately $0. 65 million dry & abandoned • Two discovery wells drilled and tested to date • Follow up locations to be pursued • Farm-in agreements made on 1, 536 hectares

Westlock Area • Acquired 30% interest in 3, 328 hectares of land plus production • Successful gas well to be tested in Q 2 • One 100% well and two 30% wells to be drilled this summer • Several undrilled locations

New Project Acquisition Criteria • • • Purchase price of NPV 10% based on proved producing reserves Bias toward natural gas Multi horizon potential Undrilled land holdings Proximity to pipeline and under utilized processing facilities

Beaver River Field British Columbia

Beaver River Field • Gas in 6 to 10 shallow sands tested by Amoco but too small to produce in 1970’s • Re-processed 3 D seismic mapping shows potential for significant gas reserves volumetrically • Deeper horizon with over 1. 2 Tcf OGIP; remaining recoverable gas estimated at 20 – 90 million boe • Infrastructure and pipeline in place • Farmout agreement for 4 wells and 2 option wells

Farmout Agreement • Transeuro Energy acquired the option to earn in the Beaver River Field for C$30. 3 million • Transeuro will fund and operate the drilling program utilizing modern completion techniques • Initial phase will focus on shallow Mattson sands – four re-entries estimated at C$10 million by Transeuro • Second phase will involve two option wells – one for new Mattson sand one for new compartment in Nahanni estimated at C$20 million by Questerre • Upon completion of entire program, Transeuro will have paid C$60 million to earn a 50% in the Mattson and Nahanni • Questerre will retain the remaining 50% interest in the Field • Independent reserve report has NPV-10 of over C$100 million for Questerre’s interest

Field Potential Proposed c-74 -K Mattson 2 -4 Bcf 8 -14 Bcf Mattson 25 -68 Bcf 6 -10 Bcf 4 -8 Bcf Mattson – 40 -67 Bcf Mattson 9 -18 Bcf 1. 5 Bcf 1 -2 Bcf Nahanni -35 Bcf Nahanni - 20 Bcf Reserve estimates only for scoping purposes

Mattson Potential • 6 -10 sandstone zones tested by Amoco in 1970 s but not produced • 10 locations identified based on well test data correlated to seismic mapping • 0. 4 million boe (2. 4 bcf) in probable reserves assigned to a single zone in a single well • Questerre to retain 50% interest through 5 well drilling program

Nahanni Potential • 6 new compartment locations identified on reprocessed 3 -D seismic survey • 3 infill locations based on coning • 20 million boe (120 bcf) in possible reserves • 90 million boe (540 bcf) in resource potential • Questerre to retain 50% interest through 1 option well

St. Lawrence Lowlands Quebec

St. Lawrence Lowlands • Large land position of over 700, 000 acres in centre of basin • Primary play is analogous to Appalachian Basin with reserves of approx. 10 Bcf per well • Talisman currently producing 18, 000 boe per day from analogous play across border in New York • Over 40 potential drilling locations identified on extensive seismic database Quebec St. Lawrence Lowlands New York Numerous Talisman discoveries with test rates of 12 to 30 mmcf/d

Technical Overview • Hydrothermally dolomitized reservoir • Primary zone is Trenton-Black River at 1, 900 to 2, 200 meters • Extensive seismic database over 3, 000 km • Regional mapping of fault trends • Waveform analysis of porosity anomalies shows dozens of drillable anomalies

Excellent Fiscal Terms • Drilling costs per well: $3. 5 million (single well) $2. 5 million (multi well program) • Equip & Tie-in per well: $0. 5 million • Initial Tie-in: $2. 5 million • Pricing per mcf: $7. 50 (AECO + $1. 00 in summer) $8. 50 (AECO + $2. 00 in winter) • Royalties: 12. 50% • Trans & Process per mcf: $0. 40 • Lease rentals per hectare: $0. 10 • Term: 8 years remaining on 10 year term

New High Impact Project Criteria • • • Ability to leverage expertise in unconventional reservoirs Control of play available through large land position Proximity to infrastructure Ability to add value by high grading prospects for farmout Scalable with low initial investment Significant technical data available

Corporate Overview

Restructuring • Questerre believes that its major well at the Beaver River Field in 2004 missed the targeted structure due to seismic processing errors • Questerre believes that the seismic processing company neglected to follow its own prescribed processing sequences, resulting in errors in the processing • Questerre is seeking C$28 million to recover costs • 97% of creditors supported a financial restructuring successfully completed in fall 2004 • Assets and tax pools preserved intact • 2005 prudent business plan in a stable Canadian economic environment combines: – High impact onshore frontier projects – Low cost, high value conventional drilling and production

Board of Directors • Les Beddoes, Jr. – International Exploration - Former VP Exp for Bow Valley Industries, Victoria, BC • Michael Binnion, President & Chief Executive Officer • Russ Hammond – Corporate Finance - Former Managing Director, Greenwell Montague, London, UK • David Mallory, Interim Chief Financial Officer • Tom Landry, Jr. – Oil & Gas E&P and Service Sector - Oil and gas investor & lawyer, Dallas, Texas • Peder Paus – Merchant banker – Former Managing Director Manufacturers Hanover Trust, London, New York, Oslo • Jed Wood – Oil & Gas E&P and Service Sector - Founder and CEO Hi-Arctic Well Control, Red Deer, Alberta

Management • • Michael Binnion, President & Chief Executive Officer John Brodylo, VP Exploration (Nexen) Wayne Hauck, Geophysicist (Murphy Oil, Philips) Al Albertson, Drilling & Production Engineer (En. Cana) Maria Rees, Corporate Secretary (Can. Argo, Flowing) Richard Mindus, Operations Manager (Nexen) Jason D’Silva, VP Finance (Can. Argo, Flowing)

Share Capitalization Directors, Officers & Employees Terrenex Acquisition Corporation Clay Riddell/Paramount Oil & Gas 14, 964, 241 10, 648, 785 15% 11% 7, 435, 500 7% VPS Shareholders (excluding insiders) 38, 992, 806 39% Float 27, 835, 572 28% Total 99, 876, 904 Options (Avg. exercise price $0. 28) 6, 445, 000 Convertible loan ($0. 6 million @ $0. 30) 2, 000 All shares currently issued are freely transferable on OSE

2004 Financial Summary • Daily Production 130 boe per day • Revenue C$1. 64 million • Net Income C$0. 69 million • Working Capital C$2. 76 million

2005 Corporate Objectives • Secure secondary listing on OSE and complete C$5 - C$10 million offering • 2005 exit production target of 500 boe per day; increase of 370 boe per day from Alberta properties by year end • Commence shallow drilling project at Beaver River with Transeuro Energy this summer • Find new partner to proceed with first well in the St. Lawrence Lowlands in 2006 • Evaluate and acquire additional projects in Alberta and British Columbia to complement existing projects

Questerre Investment Case • Conventional base of production in Alberta underpins current value Strong • Beaver River shallow gas project could double production this year well balanced • Beaver River deep gas project could multiply market value portfolio • Quebec exploration success would transform company dramatically • Portfolio provides for substantial organic growth Large growth • Access to Norwegian capital will provide a competitive advantage for potential acquisitions and corporate developments Excellent market conditions Experienced management • Gas market in U. S. expected to stay strong • Growing interest in exploration to replace reserves – farm in partners available at reasonable terms • Responsible for founding, financing, and managing several exploration and production companies • Specific expertise with conventional and non conventional reservoirs

1580 Guinness House 727 Seventh Avenue SW Calgary, Alberta T 2 P 0 Z 5 Canada Tel : (403) 777 -1185 Fax : (403) 777 -1578 Web: www. questerre. com Email : info@questerre. com