CALGARY, Sept. 24 /CNW/ - Oilsands Quest Inc. (Amex: BQI) has initiated
plans for a field test of the reservoir at its Axe Lake Discovery in northwest
Saskatchewan. Intended to evaluate reservoir response to varying pressures and
temperatures, the field test will be conducted in the first half of 2008,
subject to regulatory approval.
"This reservoir test reflects the fact that we are accelerating our
activities at Axe Lake in preparation for our field pilot program," said
Christopher H. Hopkins, President and CEO of Oilsands Quest.
For the test, the company plans to utilize a vertical well bore with
injection and production capabilities, along with adjacent observation wells.
Steam will be injected into the oil sands formation at varying temperature and
pressure so that the response of the reservoir can be monitored and evaluated.
The reservoir test will contribute data to the design of the field pilot
program which, subject to regulatory approval, is planned for start-up in the
last half of 2009. Oilsands Quest and its technical consultants are evaluating
in-situ recovery methods for the field pilot program, with an emphasis on
existing recovery methods that utilize steam and solvents.
"We anticipate Axe Lake will be suitable for in-situ production
techniques that industry is currently using or piloting," said Mr. Hopkins. "A
combination of steam with a small amount of solvent is expected to result in
excellent recovery factors for Axe Lake. This reservoir test will play an
important role in determining the in-situ methods we employ in our field pilot
"Consistent with our business plan, the company is now embarked on two
distinct paths," Mr. Hopkins explained. "With our Axe Lake Discovery, we are
focused, firstly, on delineation drilling, field testing, the field pilot
program and other development activities, all of which are aimed at maximizing
the value of our first discovery. Secondly, having drilled less than five
percent of our land holdings in Saskatchewan and Alberta, we continue to
aggressively explore our land base which we believe holds the potential for
multiple world-class discoveries."
About Oilsands Quest
Oilsands Quest Inc. is an energy exploration company aggressively
exploring Canada's largest contiguous oil sands land holding. The company
(www.oilsandsquest.com) is the originator of Saskatchewan's emerging oil sands
Except for statements of historical fact relating to the company, 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 are based on certain material
factors and assumptions of management believed to be reasonable 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.
The assumptions, risks and uncertainties include but are not limited to risks
inherent in the oil sands industry, regulatory and economic risks, and risks
associated with the company's ability to implement its business plan. Oilsands
Quest Inc. 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,
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contact: The Buick Group, Toll Free 1-877-748-0914, Office (416) 915-0915,