QUESTAR COMPLETES HIGH-VOLUME PINEDALE ANTICLINE WELL

SALT LAKE CITY — Questar Corp. (NYSE:STR) said two exploration and production (E&P) subsidiaries Jan. 30 completed a high-volume producing well in the company's Pinedale Anticline development in Sublette County, Wyo.

The Mesa Unit Well No. 3, located in the SWNW of Section 16, T32N, R109W, during the initial 24-hour period produced 11.4 million cubic feet (MMcf) of natural gas into a pipeline and 113 barrels of oil, with a flowing tubing pressure of 1,100 pounds per square inch (psi). Gary L. Nordloh, president and CEO of Questar's E&P subsidiaries, said the well's results "confirm the significance that continued development of this tight-sands gas play should have on Questar's reserve base and production."

The Mesa No. 3 was drilled to a total measured depth of 13,055 feet and was fracture-stimulated in 11 zones of the Lance Formation. The Questar subsidiaries — Wexpro Co. and Questar Exploration and Production Co. (QEP) — have a combined 93.1% working interest in the well. Double Eagle Petroleum and Mining Co. (NASD:DBLE) owns the remaining 6.9% working interest.

Nordloh said Questar's optimism about the Pinedale play's long-term potential was strengthened by other recent drilling results. Questar has drilled and is currently completing the Mesa Unit Well No. 6, about one-half mile south of the No. 3 well. The No. 6 was directionally drilled to a total measured depth of 13,440 feet in the SWSW of Section 16. The well encountered a similar amount of net pay zones as well No. 3. Three Lance Formation zones have been fracture stimulated, flowing gas at a combined rate of 6.7 MMcf per day with an average flowing casing pressure of 1,600 psi. These results are comparable to early test results from the No. 3 well, and additional zones remain to be completed. Wexpro and QEP own a combined 92.45% working interest in the well, with Double Eagle owning the remaining 7.55%.

QEP has suspended operations on a third well — the Stewart Point No. 11-34D — about 2.5 miles north of the No. 3 well. The Stewart Point well — which is structurally below the No. 3 — was directionally drilled to a measured depth of 13,550 feet. Production tests failed to produce economic quantities of gas because of lower-quality reservoir rock. Data from the Stewart Point No. 11 is consistent with nearby wells drilled by other operators in similar stratigraphic and structural settings. Only one proven undeveloped location previously booked by Questar was eliminated.

Nordloh said results of the Stewart Point No. 11-34D well do not diminish Questar's expectations for the development potential of its 14,800 gross acres in the Mesa area of the Pinedale Anticline, of which Questar subsidiaries own a combined average 60% working interest. Based on 80-acre spacing, Questar estimates the potential for 130 or more drilling locations structurally above the Stewart Point well. Based on that spacing, Questar owns a working interest in seven direct offsets to producing wells drilled by other operators. One such well, the Gannett No. 13-16 in the SWSW of Section 16, T33N, R109W, recently was completed in the Lance Formation. Estimated ultimate reserves per well are expected to range between four and 11 billion cubic feet equivalent (Bcfe), with an anticipated average of five to six Bcfe.

Questar was a participant in a 77-square mile 3D seismic survey over the north end of the Pinedale Anticline, including all of Questar's acreage. Data acquisition was completed in November 1999, and the processed data should be available in early February 2000. The seismic data, combined with information gained from recently drilled wells, should increase the efficiency and value of the project, Nordloh said.

Following completion of an environmental impact statement by the Bureau of Land Management (BLM), Questar anticipates drilling nine to 10 wells this year to continue evaluating and developing its acreage. The BLM's Record of Decision for the environmental impact statement is expected to be issued in May 2000.

Questar is a $2.2 billion integrated energy resources and services company headquartered in Salt Lake City. Through subsidiaries, it engages in energy development and production; gas gathering and processing; wholesale gas, electricity and liquids trading; retail energy services; interstate gas transmission and storage; retail gas distribution; and information systems and technologies.