2008-09-02-2008-01-31-2008-03-03

Acquired 75% WI in 22,000 net acres in Red River and Bienville parishes, LA, gaining 276 Bcfe/net proved.

Questar Corp., Denver, (NYSE: STR) through subsidiary Questar Exploration & Production Co., has closed its acquisition of gas fields in northwestern Louisiana in two transactions from Will-Drill Resources Inc., Shreveport, La., for $601 million and other undisclosed private sellers for $58 million for a total of $659 million. The assets include a 75% average working interest in 22,000 net acres in Red River and Bienville parishes. Net proved reserves are 276 billion cubic feet equivalent with approximately 20% proved developed. Proved, probable and possible reserves are 593 billion equivalent. The acquisition includes 74 producing wells with 852 future development well locations on a combination of 20-acre and 40-acre density. Development targets include multiple stacked tight-gas sands in the Cotton Valley and Hosston formations at 6,500 to 10,500 feet. Questar chairman and chief executive Keith Rattie says, "We're turning up our Midcontinent growth with these bolt-on acquisitions in our core northwestern Louisiana Cotton Valley/Hosston play. We're putting more assets in the hands of our experienced Midcontinent team and diversifying our E&P business." Questar expects to double its Midcontinent production during the next four to five years. Combined with existing inventory in Elm Grove Field, Questar E&P will have more than 1,050 Cotton Valley/Hosston development locations in northwestern Louisiana of which more than 950 will be operated. The effective date is Jan. 1. Standard & Poor's Ratings Services analyst Ralph A. DeCesare says, "The stable (credit-quality) outlook reflects currently strong financial parameters and conservative hedging policies, partially offset by QMR's (subsidiary Questar Market Resources Inc.) increased influence on Questar's overall results. This results in company exposure to fluctuations in gas and oil commodity-price swings."