SRC Constructing Oil Sands Laboratory and 3D Scaled Physical Model with $1 Million Contribution from Oilsands Quest Inc.

    Amex:   BQI

    REGINA, Oct. 10 /CNW/ - The Saskatchewan Research Council (SRC) is
constructing a new oil sands research laboratory, which will include a 3D
scaled physical model for oil sands testing that is being built with the
assistance of a $1-million contribution from Oilsands Quest Inc.
    The new laboratory and unique-in-Canada model were officially
commissioned by the Honourable Lyle Stewart, Minister of Enterprise and
Innovation, SRC President and CEO Laurier Schramm, and Oilsands Quest CEO
Christopher H. Hopkins, today at SRC's Regina office.
    "The oil sands research generated by this laboratory will undoubtedly
bolster the promising exploration and recovery efforts in Saskatchewan," said
Minister Stewart. "Focused investments in industry-driven research like this
are investments in the economic future of our province and our people."
    "We are dedicating this 3D scaled physical model to further researching
Saskatchewan's oil sands potential," said SRC President and CEO Dr. Laurier
Schramm. "Thanks to Oilsands Quest's contribution, this model will help us
refine recovery methods that can be directly applied to Saskatchewan's oil
sands deposits."
    The new laboratory and its 3D scaled physical model will allow scientists
to develop thermal and solvent extraction processes (TSX) to recover bitumen
from oil sands. It will allow testing of bitumen recovery processes under
realistic reservoir conditions and provide the data to enable advanced
simulation work and design. The model will be a highly pressurized
mini-reservoir filled with actual reservoir sand and fluids to simulate the
Saskatchewan oil sands where energy efficient TSX techniques may eventually be
applied. The model will also have the unique ability to test high temperatures
of up to 250 degrees C.
    Oilsands Quest will evaluate the recovery and production methods
developed with the 3D scaled physical model for its Axe Lake Discovery in
northwest Saskatchewan.
    "We are looking forward to using this new 3D scaled physical model", said
Oilsands Quest CEO Christopher H. Hopkins. "We're confident that this new
model combined with SRC's expertise will assist us in finding the most
efficient and profitable way to tap into the potential within Saskatchewan's
oil sands."
    The new laboratory and its 3D scaled physical model builds on SRC's long
history of working to develop the province's oil resources. SRC has been
providing technical solutions to Canada's oil sands industry since the 1970s.

    About Saskatchewan Research Council

    SRC is Saskatchewan's lead provider of applied research, development,
demonstration, and commercialization. SRC takes leading-edge knowledge
developed in Saskatchewan and sells it to the world. SRC brings the best
knowledge the world has to offer and applies it to Saskatchewan industry's

    About Oilsands Quest Inc.

    Oilsands Quest Inc. (AMEX:  BQI) is applying its technical expertise to
develop multiple global-scale discoveries while aggressively exploring
Canada's largest contiguous oil sands land holding. The company
( is the originator of Saskatchewan's emerging oil sands

For further information:

For further information: Paul K. O'Donoghue, MBA, Vice President,
Investor Relations and Corporate Planning, Oilsands Quest Inc., Email:, (403) 263-1623; Erin Taman Athmer,
Communications Advisor, Saskatchewan Research Council, Email:, (306) 381-3407

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