Oilsands Quest files 10-Q Quarterly Report, provides update of field operations in Saskatchewan and Alberta



    Amex:   BQI

    CALGARY, March 18 /CNW/ - Oilsands Quest Inc. (Amex:   BQI) announces that
its Form 10-Q Quarterly Report for the period ended January 31, 2008 was filed
Friday, March 14, 2008 (available at www.sec.gov and www.sedar.com). The
company also provides an update of the status of winter field operations on
its contiguous oil sands exploration lands in Saskatchewan and Alberta.

    
    Drilling program (September 14, 2007 - March 16, 2008)

    Type of drilling          Saskatchewan           Alberta           Total
    Exploration holes                   38                25              63
    Delineation holes                   87                 -              87
    Environmental wells                 16                 -              16
    Reservoir test wells                 2                 -               2
                                      -----             -----           -----
    Totals                             143                25             168
    

    To date, in the first drilling program on the Alberta side of its
contiguous land holdings, Oilsands Quest has drilled 25 exploration holes, 18
of which have encountered meaningful intercepts of bitumen-bearing McMurray
formation. Reservoir characteristics, including bitumen saturations,
porosities and permeabilities, from the winter drilling program in both
Alberta and Saskatchewan will be determined following third-party core and
laboratory analysis, which normally takes several months to complete.

    Seismic programs

    Oilsands Quest has now completed field work on the major 3-D and 2-D
seismic programs conducted this winter on its permit lands in Saskatchewan and
Alberta. The company is using seismic survey data as one of the key tools to
further define geological structure and reservoir characteristics within the
Axe Lake Discovery area and to identify exploration targets.
    With the arrival of spring and the warming weather conditions, winter
field operations are beginning to wind down. Following the conclusion of the
winter field operations, Oilsands Quest plans to provide a more comprehensive
review of the winter program.

    Reservoir field test activities

    Drilling of thermally completed, injection and observation wells for the
reservoir field test program in the Axe Lake Discovery area is progressing and
will continue as long as weather conditions allow. At March 16, 2008, two
wells for the test program had been drilled and completed, and a third well
was being drilled. Approximately 18 vertical wells are expected to be drilled
on three test sites. A specialized heavy-duty, truck-mounted drilling rig was
contracted for drilling the test wells. Drilling of these wells is planned to
resume after spring breakup.
    The reservoir test program is currently underway with drilling, coring,
logging and well completion activities. Initial steam injection into the
reservoir is expected to commence in the summer of 2008 upon completion of
construction of the facilities, which has also begun. In preparation for these
tests, advanced laboratory testing and production simulation studies utilizing
the drilling, coring and logging data obtained from this winter's operations,
including the reservoir test drilling program, will commence immediately. This
program is intended to contribute to the data required to determine the
optimal in-situ process or processes that may be used to produce from the Axe
Lake Discovery.

    About Oilsands Quest

    Oilsands Quest Inc. is aggressively exploring Canada's largest holding of
contiguous oil sands permits and licences, located in Saskatchewan and
Alberta, and developing Saskatchewan's first global-scale oil sands discovery.
It is leading the establishment of the province of Saskatchewan's emerging oil
sands industry.

    Forward-looking information

    Except for statements of historical fact relating to Oilsands Quest, this
news release contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is frequently
characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate", "potential", "prospective" and other
similar words, or statements that certain events or conditions "may", "will",
or "could" occur. Forward-looking statements such as references to Oilsands
Quest's exploration, technical and development programs are based on the
opinions and estimates of management and Oilsands Quest's independent
evaluators at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those anticipated in the forward-looking
statements. These risks, uncertainties and other factors include, but are not
limited to, exploration and technical risks inherent in the oil sands
industry, regulatory and economic risks, lack of infrastructure in the region
in which the company's resources are located and risks associated with
Oilsands Quest's ability to implement its business plan. There are
uncertainties inherent in forward-looking information, including factors
beyond Oilsands Quest's control, and no assurance can be given that the
programs will be completed on time, on budget or at all. Oilsands Quest
undertakes no obligation to update forward-looking information if
circumstances or management's estimates or opinions should change, except as
required by law. The reader is cautioned not to place undue reliance on
forward-looking statements. The risks and uncertainties set forth above are
not exhaustive. Readers should refer to Oilsands Quest's current annual report
on Form 10-KSB and other document filings, which are available at
www.sedar.com and at www.sec.gov for a detailed discussion of these risks and
uncertainties and details regarding the location and extent of Oilsands
Quest's land holdings.





For further information:

For further information: General inquiries and retail investors, contact
Hedlin Lauder Investor Relations Ltd., Toll Free 1-800-299-7823, Office (403)
232-6251, Email irinfo@hedlinlauder.com; Institutional investors, contact
BarnesMcInerney Inc., Toll Free 1-866-794-7288, Office (416) 371-0510, Email
oilsands@barnesmcinerney.com

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Oilsands Quest Inc.

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