Stylus and Questerre commence testing of new pool discovery at Vulcan

CALGARY, July 4 /CNW/ - Stylus Energy Inc. ("Stylus") (TSX - STY) and
Questerre Energy Corporation ("Questerre") (TSX - QEC) are pleased to announce
the discovery of a new Mannville pool at Vulcan 16-29-15-25W4M (the "16-29
well") in the Vulcan area of southern Alberta. Stylus (Operator) and Questerre
each have a 50% working interest in the 16-29 well.
An initial four-day production test of 16-29 was previously conducted and
for the last 24 hours of the test, the 16-29 well flowed approximately      
177 barrels of oil equivalent per day up 2 3/8 inch (60.3 mm) tubing,
consisting of 110 barrels of 39.6 degree API oil (17.6 cubic meters) per day
and 400 thousand cubic feet (11,000 cubic metres) per day of sweet associated
solution gas on a 0.25 inch (6.35 mm) choke.
Stylus commenced an extended production test of the 16-29 well on     
July 3, 2005. The solution gas is being flared during this test and a gas
pipeline is being surveyed for construction commencing August 2005. Production
from the 16-29 well is expected to be on-stream at restricted rates prior to
the completion of a gas pipeline and the receipt of Good Production Practice
status for the pool.
Stylus and Questerre have recently acquired an additional 5,120 acres
(2,048 hectares) of land pursuant to a lease continuation application to the
Alberta government. This expands the joint holdings in the area to 8,320 acres
(3,328 hectares). The companies expect to commence a Mannville delineation
drilling program in August 2005.

About STYLUS

Stylus Energy Inc. is an Alberta exploration and production company
focused in southern and north-eastern Alberta. Stylus common shares are listed
on the Toronto Stock Exchange under the symbol "STY". Further information with
respect to Stylus can be found at its website at www.stylusenergy.com.

Paul D. Evans, President and Chief Executive Officer

About QUESTERRE

Questerre Energy Corporation is a Calgary-based independent company
actively developing a portfolio of oil and gas assets in Canada. Questerre's
common shares are listed on the Toronto Stock Exchange under the symbol "QEC".
Further information with respect to Questerre can be found at its website at
www.questerre.com.

Michael R. Binnion, President & Chief Executive Officer

The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.

Forward-looking Information

This news release contains forward-looking information. Implicit in this
information are assumptions regarding natural gas prices, production,
royalties and expenses that, although considered reasonable by Stylus and
Questerre at the time of preparation, may prove to be incorrect. These  
forward-looking statements are based on certain assumptions that involve a
number of risks and uncertainties and are not guarantees of future
performance. Actual results could differ materially as a result of changes in
Stylus and Questerre's plans, changes in commodity prices, general economic,
market, regulatory and business conditions as well as production, development
and operating performance and other risks associated with oil and gas
operations. There is no guarantee by Stylus and Questerre that actual results
achieved will be the same as those forecast herein.
BOE's may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent value
equivalency at the wellhead.

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