ABN 22 009 171 046

Overview of the Testing Program

The Company is pleased to announce that a testing program has commenced at the Jack Hamar 2-13 well at the Southeast Lost Hills (SELH) Project on a potential gas interval between 1,850 ft to 1,857 ft with the objective of bringing any commercial gas discoveries from this target zone into production.

This shallow interval was identified when the well was drilled and tested in March 2008.

The program is expected to take less than a week to complete. Quests share of costs is expected to be around US$32,500 and if successful the facilities on location will enable immediate commercialisation of the gas sales into the pipeline and commensurate increase in project revenue.

Update on Gas Production

Total gas sales up to 25 February 2009 was 8.2 million cubic feet from the Jack Hamar 3-13 well which commenced producing gas on 5 December 2008 (cumulative production to date is 25.8 million cubic feet).  As at 25 February 2009, the average daily gas sales in February were 330 mcf with wellhead pressure of about 900 psi.

Quest Petroleum has a 50% working interest in the 3-13 well.

About the Southeast Lost Hills Project

The Southeast Lost Hills Project is located in the San Joaquin Basin, California, along the southern flank of the large Lost Hills Anticline.  The Lost Hills structure is a large feature that has already produced in excess of 400 million barrels of oil equivalent (?MMboe?) to date to the north of the Jack Hamar 3-13 discovery which was brought into production on 5 December 2008.

The Southeast Lost Hills gas accumulation is a combination structural and stratigraphic trap.  The reservoir targets are shallow Pliocene sands that pinch out around the flanks of the Lost Hills Anticline.  Seismic amplitude anomalies are associated with the presence of these hydrocarbons.  Since the Southeast Lost Hills project is a shallow play, with target depths of not greater than 4,000ft, it is expected that commercial development costs will be relatively low.

Quest believes there is potential for a substantial gas accumulation in the shallow Pliocene reservoirs around the Lost Hills structure. The commercial development potential of the project is enhanced by low drilling costs due to the shallower reservoirs, strong gas demand in the area, local infrastructure and high gas prices.

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www.qpnl.com.au

On behalf of the Board of Directors

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