Questa Energy

Questa Energy Corporation is a family owned independent energy company based in Amarillo, Texas and was founded in 1985. It is principally engaged in the exploration, production, and acquisition of crude oil and liquid rich natural gas resources. The company currently owns and operates over 150 wells in Texas, Oklahoma, and Kansas. Growth is achieved primarily through the drill bit targeting oil and gas rich areas in the Mid-Continent. Projects are generated in-house at ground level which allows for a greater return on investment.

Oil and Gas Investments

Questa Energy Corporation is continually developing oil and gas projects primarily in the Mid- Continent region. Questa retains a substantial equity position in most projects, and the remaining interests are offered to knowledgeable investors and industry participants. A typical project is developed by securing acreage based on specific geologic conditions. A prospectus can be created once the acreage is secured. The prospectus may include a geologic, land, and engineering summary, geologic and land maps, an estimate of costs in the form of an Authority for Expenditure (AFE), a participation agreement and joint operating agreement (JOA).

Exploration

Exploration efforts are concentrated in niche areas where we can utilize our local knowledge and expertise. We have been prinapally involved in both horizontal and vertical drilling projects located in Texas, Oklahoma, and Kansas. Adequate data is required to be able to analyze prospective acreage for a potential drilling location and to insure a quality reservoir capable of producing substantial quantities of oil and gas. Projects target long life reserves (15-20 years+) and quick pay-outs (36 months or less) and rates of return are expected to be no less than 20%.

Oil and Gas Tax Benefits

Direct participation in oil and gas can generate several tax benefits. These benefits range from large up front deductions for intangible drilling costs (IDC), to tax credits for the development of certain types of tight formations. Deductions are generated mainly from the cost of non­salvageable equipment or services conducted during the drilling phase, testing, and/or completion of the well.

Risk

Direct participation in oil and gas is for the risk tolerant investor. Oil and gas investment provides an inflation hedge, as well as diversity to an equity investment portfolio.