Questar Exploration Closes Private Placement

Business Wire, May 2, 1996

CALGARY, Alberta--(BUSINESS WIRE)--May 2, 1996--QUESTAR EXPLORATION (TSE: QRX) QUESTAR EXPLORATION INC. announced today its intention to close a $3 million private placement consisting of the issue of the following:

1,700,000 "flow-through" special warrants at a price of $0.60 per special warrant

3,000,000 special warrants at a price of $0.50 per special warrant

583,334 "flow-through" common shares at a price of $0.60 per common share and

300,000 common shares at a price of $0.50 per common share.

Yorkton Securities Inc. is acting as Agent to Questar in connection with this private placement. This private placement is expected to close on or about May 6, 1996 and is subject to final regulatory approval. The proceeds will be used to incur Canadian Exploration Expense and also to finance Questar's ongoing exploration and development program.

Questar is a Canadian oil and gas exploration and production company with operations in Alberta and Saskatchewan. The common shares of Questar are listed on The Toronto Stock Exchange under the symbol "QRX". -0-

Note to Editors: This press release has neither been approved nor disapproved by The Toronto Stock Exchange.

CONTACT: Questar Exploration Inc.

Brian A. Skinner, 403/234-7703 (President)