Amex: BQI
CALGARY, June 6 /PRNewswire-FirstCall/ -- Oilsands Quest Inc. (AMEX:BQI) announces the resumption of field activities associated with preparations for the reservoir field test program at its Axe Lake Discovery in northwest Saskatchewan. Since the end of the 2007/08 winter drilling program on March 26, 2008, most field work has been suspended due to spring breakup. However, off-site work related to the field test program has continued, and site workers have been returning to the Base Camp since mid-May.
At the present time, 45 construction crew personnel are on site preparing Test Site 1 in order to accommodate construction of the test facilities. Operations for Test Site 1 of the reservoir test program will include power generation, steam generation, water processing and handling, fluid recovery and treatment, and the injection of steam and/or hot water into the reservoir. Equipment for these operations has been sourced from a variety of locations in Canada and the United States. Oilsands Quest's operating and engineering personnel recently traveled to Houston to conduct a factory approval test on the steam generation and water treatment equipment.
To date, six 1,000-barrel heated liquid storage tanks have been received at Test Site 1, and two 1,000-barrel heated liquid storage tanks have been delivered to both Test Sites 2 and 3. The preliminary engineering contracts for the surface facilities for Test Site 2 have been awarded and design work has commenced.
The major equipment for steam generation, water treatment and power generation is expected to arrive at the Test Site 1 over the next four to six weeks; most of this equipment will be installed in all-season building structures. Construction of these facilities is expected to be completed approximately eight weeks after the arrival of the major equipment. At the present time, initial steam injection into the reservoir at Test Site 1 is on schedule to occur in late summer 2008.
By the end of this month, Oilsands Quest expects to resume drilling of the wells required for injection and monitoring at the three reservoir test sites, including the remaining two of the six wells at Test Site 1 and wells at Test Site 2 and 3 as appropriate.
The company's Base Camp, which has in excess of 200 beds, remained operational during spring breakup to accommodate personnel involved with the field test program and ongoing baseline environmental studies.
About Oilsands Quest Oilsands Quest Inc. (http://www.oilsandsquest.com/) is aggressively exploring Canada's largest holding of contiguous oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first global-scale oil sands discovery. It is leading the establishment of Saskatchewan's emerging oil sands industry.
Forward-looking information Except for statements of historical fact relating to Oilsands Quest, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "prospective" and other similar words, or statements that certain events or conditions "may", "will", or "could" occur. Forward-looking statements such as references to Oilsands Quest's reservoir field test program are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, technical risks inherent in construction projects in the oil sands industry, regulatory and economic risks, lack of infrastructure in the region in which the company's resources are located and risks associated with Oilsands Quest's ability to implement its business plan. There are uncertainties inherent in forward-looking information, including factors beyond Oilsands Quest's control, and no assurance can be given that the construction of the facilities and the execution of the test program will be completed on time, on budget or at all. Oilsands Quest undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. The risks and uncertainties set forth above are not exhaustive. Readers should refer to Oilsands Quest's current annual report on Form 10-KSB and other document filings, which are available at http://www.sedar.com/ and at http://www.sec.gov/ for a detailed discussion of these risks and uncertainties and details regarding the location and extent of Oilsands Quest's land holdings. DATASOURCE: Oilsands Quest Inc.
CONTACT: General inquiries and retail investors, contact Hedlin Lauder Investor Relations Ltd., Toll Free 1-800-299-7823, Office (403) 232-6251, Email ; Institutional investors, contact BarnesMcInerney Inc., Toll Free 1-866-794-7288, Office (416) 371-0510, Email
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