Questar E&P Acquires New Haynesville Shale Acreage, Provides an Operational Update on Key Plays, and Sets Initial 2010 Produ

SALT LAKE CITY, Oct 27, 2009 (BUSINESS WIRE) --
STR | Quote | Chart | News | PowerRating -- Questar Corporation (NYSE:STR) subsidiary Questar Exploration and
Production Company (Questar E&P) today provided an update on the
company's leasing and acquisition activity in the Haynesville Shale
play, recent well results and initial drilling plans for 2010 in its
core operating areas. Questar E&P also provided 2009 and 2010 natural
gas and oil-equivalent production guidance and capital expenditure
forecasts.

Questar E&P increases net leasehold in Haynesville Shale core by 39%
to 43,000 acres

Through a series of acquisitions and ongoing leasing activity, Questar
E&P has increased its net leasehold position in the core of the
Haynesville Shale play in NW Louisiana to approximately 43,000 net
acres. The majority of the recently acquired leasehold is located in
Bienville Parish, immediately to the north and contiguous with the
company's Woodardville property acquired in February 2008. Development
of the newly acquired leasehold is now underway, with two wells waiting
on completion and three wells currently drilling. A revised Haynesville
leasehold map, along with updated activity maps for other Questar E&P
key operating areas, can be found at: www.questar.com.

Recent Questar E&P Haynesville well results confirm that the
company's acreage is in the "Heart of the Core" of the play

Since Questar's second-quarter teleconference, Questar E&P has completed
and turned four new operated wells to sales, each with strong initial
rates and flowing pressures.

Well Name       First Sales    Working Interest   Peak 24 hour rate
Sample 10H #2   Aug 15, 2009   66%                21.5 MMcfd
NAC 36H #1      Aug 24, 2009   62%                23.7 MMcfd
Baker 7H #1     Sep 5, 2009    63%                24.4 MMcfd
Sample 10H #1   Sep 20, 2009   93%                22.6 MMcfd

All four wells had initial flowing casing pressures in excess of 7,800
pounds per square inch on chokes varying from 24/64" to 28/64".
Year-to-date, Questar E&P has working interests in 19 new Haynesville
completions, plus nine wells that have been drilled and cased with
completions either underway or planned by the end of the year. In
addition, the company has interests in 10 Haynesville wells that are
currently being drilled. For 2010, Questar E&P expects to operate eight
drilling rigs in NW Louisiana, with seven rigs targeting horizontal
Haynesville development.

New well completions at Pinedale on track with previous forecast

At Pinedale in southwestern Wyoming, the company has completed and
turned to sales 82 new wells in 2009 and is on track to complete a total
of 95 to 100 wells by year end. The company has five operated rigs
currently working at Pinedale and anticipates adding a sixth rig by year
end. Questar's Pinedale team continues to improve drilling and
completion performance at Pinedale. Average gross completed well costs
on Questar-operated wells trended below $5 million during the quarter.
If five-acre-density development is appropriate for a majority of its
leasehold, the company currently estimates up to 1,400 additional wells
will be required to fully develop its acreage. Questar E&P has an
approximate 60% working interest in its operated Pinedale acreage. For
2010, the company plans to operate six rigs on its Pinedale acreage.

Anadarko Basin Woodford Shale results continue to confirm "Cana" play
potential

Questar E&P has added two new company-operated Woodford "Cana" Shale
wells on its 22,000 net acre leasehold in western Oklahoma. On August
10, the Leck 4-28H well (100% WI) was turned to sales with a peak
24-hour production rate of 4.9 MMcfd. The Austin 1-23H well (100% WI)
was turned to sales on October 12 with a peak 24-hour production rate of
7.6 MMcfd and 42 bopd. The company has one operated rig working in the
play, has working interests in six currently drilling wells, and five
wells that have been drilled and cased and are either waiting on
completion or completion is in progress. Questar E&P currently has
working interests in 45 producing wells and estimates it could have
interests in up to 700 development locations in the emerging play. For
2010, Questar E&P anticipates operating one drilling rig in the play and
participating in numerous outside operated wells.

Horizontal Granite Wash potential under evaluation in Oklahoma and
Texas

The company recently completed a horizontal Granite Wash "B" (Colony
Wash) well in Washita Co, Okla. The Roxanne 2-17H went to sales on
October 9 with a peak 24-hour production rate of 5.5 MMcfd and 660 bopd
on a 22/64-inch choke. Questar E&P has a 56% working interest in the
well. In the Texas Panhandle, the company is currently drilling its
first operated horizontal Granite Wash well. The Puryear 5-28H (35% WI),
located in Wheeler Co, will target the "Caldwell" Granite Wash zone with
a projected measured depth of 17,200 feet. Questar E&P has over 24,000
net acres in the TX and OK Granite Wash plays. For 2010, the company
anticipates operating at least one drilling rig targeting both
horizontal and vertical Granite Wash development.

Second Questar-operated Bakken well completion further validates
company's 80,000 net acre leasehold in North Dakota

On October 12, Questar E&P turned its second horizontal Bakken well, the
MHA 1-08H-149-90 (78% working interest), to sales with a peak 24-hour
production rate of 841 Boe per day from a 5,023 foot lateral in the
Middle Bakken dolomite. The MHA 1-08H-149-90 is a 5-mile step-out from
the nearest Bakken production to the north and is the first Bakken
producer in the township. The company is drilling ahead on a third
Questar E&P-operated horizontal well, the MHA 1-13-14H-150-91 (87.5%
working interest), with a planned lateral length of 9,300 feet. Questar
E&P currently plans to operate one drilling rig throughout 2010 and
currently has working interests in 23 producing wells in the play.

Questar E&P 2009 production guidance now 183-186 Bcfe

For the third quarter of 2009, Questar E&P net production was 43.8 Bcfe,
or an average of 476 MMcfe per day. Cumulative net production through
the third quarter of 2009 was 134.1 Bcfe. Third-quarter production
volumes were reduced by continued price-related voluntary curtailments
from the second quarter, as the company deferred completion of new
wells, curtailed production and shut-in production from some existing
wells. The company has reduced curtailments in the fourth quarter, and
forecasts net production for 2009 will range between 183 and 186 Bcfe.

"We are now returning curtailed and shut-in wells to production and
working through our deferred completion inventory," said Chuck Stanley,
Questar E&P president and CEO. "Flush production from shut-ins and
ongoing normal-course completions has boosted Questar E&P current
production to about 575 MMcfe per day." For 2009, Questar E&P forecasts
capital expenditures of $1.05 billion.

Questar E&P provides initial 2010 production of 210-215 Bcfe, up
about 15% over 2009 levels

Questar E&P estimates net production for 2010 will range between 210 and
215 Bcfe. For 2010, Questar E&P projects capital expenditures of
approximately $0.9 billion.

"We've got great visibility on production growth for the fourth quarter
of 2009 and for 2010 and beyond," Stanley added. "With our inventory of
high-quality development locations in some of the most economic resource
plays in North America, we now have confidence in our ability to grow
production 12-15% per year over the next five years - without an
acquisition."

About Questar

Questar Corp. (NYSE:STR) is a natural gas-focused energy company with an
enterprise value of over $9.3 billion. Questar finds, develops,
produces, gathers, processes, transports, stores and distributes natural
gas.

Forward-Looking Statements

This release includes "forward-looking statements" within the meaning of
Section 27(a) of the Securities Act of 1933, as amended, and Section
21(e) of the Securities Exchange Act of 1934 as amended. All statements
other than statements of historical facts included or incorporated by
reference in this report, including, without limitation, statements
regarding the company's future production volumes, financial position,
business strategy, budgets, projected costs, and plans and objectives of
management for future operations are forward-looking statements.
Although these statements are made in good faith and are reasonable
representations of Questar Corporation's expected performance at the
time, actual results may vary from management's stated expectations and
projections due to a variety of factors.

For more information, visit Questar's Web site - www.questar.com

SOURCE: Questar Corporation

Questar Corporation, Salt Lake City 
Samuel D. Brothwell, 801-324-5174

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