Oilsands Quest announces initial closing of private placement of flow-through common stock

    Amex:   BQI

    CALGARY, March 7 /CNW/ - Oilsands Quest Inc. (Amex:   BQI), formerly
CanWest Petroleum Corporation, announces the initial closing on March 6, 2007
of a previously announced private placement of $30 million Cdn
($25.6 million US) with a syndicate of underwriters on a bought deal basis.
Oilsands Quest issued 3,097,534 common shares on a flow-through basis at a
price of $5.64 Cdn ($4.82 US) per share for gross proceeds of $17.5 million
Cdn ($14.9 million US). There was significant participation by Oilsands
Quest's Canadian directors, officers, executives, employees and associates,
amounting to approximately $1.3 million Cdn.
    The remaining 2,222,466 common shares will be issued on a flow-through
basis through the underwriters at a price of $5.64 Cdn ($4.82 US) per share in
subsequent closings in accordance with the underwriting agreement on or before
May 6, 2007.
    The common shares were not registered under the United States Securities
Act of 1933, as amended (the "Securities Act") and were not offered or sold in
the United States or to U.S. persons (as such term is defined in Regulation S
under the Securities Act) absent a registration statement or an applicable
exemption from registration. This notice is not an offer to sell or a
solicitation of an offer to buy such securities and is issued pursuant to
Rule 135c under the Securities Act of 1933.

    Oilsands Quest Inc., through its subsidiary Oilsands Quest Sask Inc., is
conducting the province of Saskatchewan's first major oil sands exploration
program and is currently conducting its second season of exploration drilling
on its oil sands permits, which are located in northwest Saskatchewan,
directly across the border from the Athabasca oil sands in Alberta. Oilsands
Quest is focused on proving the extension of commercially viable deposits of
oil sands into Saskatchewan.

    Forward-Looking Information
    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" and other similar words, or statements
that certain events or conditions "may", "will" or "could" occur.
Forward-looking statements such as the references to Oilsands Quest Inc.'s
financing plans, drilling program, geophysical programs, testing and analysis
programs and timing of such programs are based on the opinions and estimates
of management 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, which 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. There
are uncertainties inherent in forward-looking information, including factors
beyond Oilsands Quest Inc.'s control, and no assurance can be given that the
financing or the programs will be completed on time, on budget or at all.
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 10KSB 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 the Oilsands
Quest permit lands.

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 The
Buick Group, Toll Free 1-877-748-0914, Office (416) 915-0915, Email

Organization Profile

Oilsands Quest Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890