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Oil Quest Resources (OILQ)

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Thursday 27 October, 2005

Oil Quest Resources

AGM Statement

Oil Quest Resources PLC
27 October 2005

                            OIL QUEST RESOURCES plc

                                 AGM STATEMENT


At today's Annual General Meeting ('AGM') of Oil Quest Resources plc ('Oil 
Quest' or 'the Company'), the AIM quoted oil and gas exploration company, 
Chairman, Michael Thomsen, will make the following comments:

'I am pleased to be able to report to shareholders that Oil Quest is in a strong 
position:

•    Shareholders' funds more than doubled during the financial period 
     ended 30 June 2005;

•    The cash balance, which is in excess of £3 million, represents more than 
     three times the Company's capital commitments for the planned drilling 
     programmes;

•    More than 85 per cent. of expenditure is focused on exploration;

•    A two well drill programme is planned for the Cleveland Basin on licence 
     PEDL 068; and

•    Oil Quest recently entered into North Sea exploration via success in the 
     UK 23rd Offshore Licensing Round.

This week, Oil Quest acquired a further 5 per cent. interest in PEDL 068
expanding 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.  Two prospects within licence PEDL 068, Kirkleatham
and Westerdale, 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.

Your Board continues to view the prospectivity of offshore licence P1153,
located within the Wessex-Channel Basin, as robust and intends to exercise a 20
per cent. option over this licence with Wessex Exploration Limited in the near
future.  Early formed structural traps, such as that at Hurst Castle, hold
excellent potential for the discovery of hydrocarbons.  Mapping, illustrating
the basin configuration at the time of migration, shows the Hurst Castle
prospect to be ideally located to have received oil at that time.  The trap at
Hurst Castle is dip and fault closed, comparable to the Wytch Farm structure.  I
look forward to updating shareholders further on this licence in due course.

As part of our ongoing exploration strategy and to broaden our scope of
opportunity, Oil Quest became a recent entrant to the Southern Gas Basin of the
North Sea through a successful application in the UK 23rd Offshore Licensing
Round.  The Company has been offered a 30 per cent. interest in Block 43/6 where
the main reservoirs are expected to be the Triassic Bunter and Carboniferous
Sandstones.  An initial work programme with our partners, Virgo Energy Limited
and Vectis Petroleum Limited, is planned. This will comprise the purchase of 400
km of 2D seismic, the reprocessing of 100 km 2D pre stack or 100 km 3D post
stack seismic, interpretation, depth conversion and mapping followed by
technical evaluation.

The Board has sourced and is currently evaluating several opportunities outside
the UK and will further update shareholders on progress in due course.

In closing, I believe that Oil Quest shareholders hold a stake in a solid, 'no
frills' junior oil company, well positioned in these times of increasing energy
prices to become a successful explorer, leading to production in due course.'

Note: A presentation in respect of Oil Quest's projects and planned drill
programmes will be given at the AGM.  A copy of this presentation can be viewed
on www.oilquest.net following conclusion of the AGM.


Enquiries:

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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