Oil battery and natural gas compression facility commissioned at Vulcan

Stylus Energy Inc. ("Stylus" or the "Company") (TSX:STY) and Questerre Energy Corporation ("Questerre") (TSX, OSE:QEC) are pleased to announce that construction and commissioning of the Vulcan central oil battery and gas compression facility is complete.

The gas compression facility provides flexibility to deliver gas to a second gas plant in the area and removes the pipeline capacity constraints on Vulcan gas production. It also provides flexibility to develop shallow gas zones in the Vulcan area and conserve solution gas from the companies' adjacent oil pool. The facility utilization rate is dependant on a number of factors, including approval of a Good Production Practice application by the AEUB, additional oil and gas gathering pipelines to be constructed in the fourth quarter of 2006, and additional successful drilling in the oil pool. The licence capacity of the oil battery is 1000 bbls per day and the licence capacity of the gas compression facility is 15 mmcf per day.

Paul Evans, President and Chief Executive Officer of Stylus, commented, "We are very pleased with the completion of the central production facilities. The extra capacity will give us full flexibility to produce the Vulcan gas field for maximum financial benefit. At the same time, we will be developing our Vulcan oil discovery with additional wells planned for late in the year."

Stylus Energy Inc. is a Calgary-based junior oil and natural gas company with operations in Alberta. The common shares of Stylus are listed on the Toronto Stock Exchange and trade under the symbol "STY".

Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

Forward-looking Information

Certain information regarding Stylus in this news release including management's assessment of future plans and operations, wells to be drilled, timing of completion of pipelines and facilities capacities may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas development, production, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals, and inability to fund required capital expenditures. As a consequence, Stylus' actual results, performance or achievements could differ materially from those expressed in, or be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any implied by, these forward-looking statements and, accordingly no assurance can of them do so, what benefits Stylus will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Stylus' operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Stylus' website (www.stylusenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Stylus does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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For further information: Stylus Energy Inc., Paul Evans, President & CEO, Tel: (403) 517-8791, Fax: (403) 517-8798, Email: info@stylusenergy.com, Web: www.stylusenergy.com

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