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Oil Quest Resources (OILQ)

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Tuesday 25 October, 2005

Oil Quest Resources

Acquisition

Oil Quest Resources PLC
25 October 2005



                            Oil Quest Resources plc


 Acquisition of Further Interest in Cleveland Basin Onshore Hydrocarbon Licence

       Two Well Exploration Programme with Operator, Egdon Resources Plc



Oil Quest Resources plc ('Oil Quest' or the 'Company') is pleased to announce
that it has entered into an agreement with Sterling Resources (UK) Limited ('
Sterling') to acquire a further 5 per cent. interest in UK onshore hydrocarbon
exploration licence PEDL 068, increasing the equity holding in this licence to
20 per cent.  The licence is located within the Cleveland Basin, an onshore
continuation of the prolific offshore Southern Gas Basin.



Under the terms of the agreement, Oil Quest will pay to Sterling 7.5 per cent.
of the costs to target depth of two planned wells.



Two prospects, Kirkleatham and Westerdale, within licence PEDL 068 are planned
to be drilled by the Operator, Egdon Resources Plc, during December 2005 and
January 2006.  Previous wells, drilled down-dip on both prospects, encountered
gas.



The Cleveland Basin contains seven fields with approximately 60bcf of gas
reserves.  The producing fields include Kirby Misperton, Malton, Marishes and
Pickering and gas accumulations at Locton, Caythorpe and Eskdale.  The main
reservoirs for gas are the Zechstein carbonates.  Secondary reservoir potential
occurs in the Permian Rotliegendes sandstone and the Carboniferous sandstones.
Traps are structural, typically in faulted anticlines where associated fractures
allow better reservoir productivity to be achieved.



Technical Overview of Kirkleatham and Westerdale Prospects


Kirkleatham



The Kirkleatham prospect is prospective for gas in the Zechstein carbonates in a
structural trap.  The structure is a broad low relief dip closed feature closed
to the east by faulting.  Faults are seen on the seismic which affect the
Zechstein and which may give rise to increased fracturing in the formation.  The
presence of fractures in the carbonates can greatly enhance the productivity of
the wells.  The presence of gas shows in two wells Kirkleatham-1 and 2 drilled
on the edge of the structure demonstrates a valid trap containing gas.  The gas
source is believed to be from Carboniferous Westphalian coal measures.  The trap
is sealed by the overlying evaporates within the Zechstein.  Porosity in the
carbonates is variable improving where oolites or fossil debris are present.
Fractures greatly improve permeability in the reservoir allowing the otherwise
patchy porosity to connect effectively.  A secondary target for this well is the
Rotliegendes sandstone which had oil shows in Kirkleatham-1 and 2.



Westerdale


The Westerdale prospect is prospective for gas in the Zechstein carbonate in a
structural trap.  The structure is a broad anticline formed during basin
inversion.  It is dip closed north, south and east and fault closed to the west.
 The feature is a complex anticline with faulting affecting the potential
reservoir section.  This feature was tested by the Ralph Cross-1 well which
tested gas from the Zechstein at rates up to 6 mmscfg/d.  Subsequent
reinterpretation using additional seismic not available at the time the well was
drilled, shows the well to be on the south-west flank of a structure which lies
to the north of the well.  The presence of gas in a valid trap is shown by the
Ralph Cross well.  A secondary objective occurs in Carboniferous sandstones at
this location.


(Source: Deloitte Petroleum Services)




For further information:


David Bramhill                             Dominic Barretto/Maxine Barnes
Oil Quest Resources plc                    Bishopsgate Communications Ltd
+44 (0)117 957 3666                        +44 (0)20 7430 1600
[email protected]                        [email protected]
www.oilquest.net

Tim Feather
Westhouse Securities LLP
+44 (0)161 838 9140
[email protected]







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