Crude Oil Tar Sand Companies

[NYBob]

Oilsands Quest Reports Success Ratio of 87% in Current Drilling Program on Oil Sands Exploration Permits in Saskatchewan -


CALGARY, ALBERTA -- (MARKET WIRE) -- 01/16/2007 --

Oilsands Quest Inc.
(AMEX: BQI) reports that drilling results to date in its
winter 2006/07 exploration program on its oil sands
exploration permits in northwest Saskatchewan indicate
an 87 percent success ratio.
Between November 3, 2006 and January 15, 2007, a total
of 31 holes were drilled and, of these, 27 were cored
through bitumen-bearing McMurray formation.

"We are extremely pleased with our drilling results to date,"
said Christopher H. Hopkins, President & Chief Executive
Officer of Oilsands Quest Inc.
"Our 24-hole drilling program last winter achieved an
80 percent success ratio, with 19 holes intercepting
the bitumen-bearing McMurray formation.
We have surpassed last winter's success rate to a significant
degree.
In addition, our drilling to date covers a much larger area."

The 31 core holes drilled to date (27 cored) in the current
drilling program cover approximately 17 sections
(one section equals one square mile) adjacent to the
West Block drilled last year, where 17 holes (14 cored)
tested an area of approximately seven sections.
This winter's drilling results to date demonstrate the
continuation of Oilsands Quest's original discovery over
a total area of about 24 sections.

"We have growing confidence in the continuity of this
resource," said Mr. Hopkins. "Due to the extent of land
covered with our drilling, its proximity to the original
discovery and our consistent drilling success ratio, we
have designated the discovery area plus additional
prospective land associated with it as
the Axe Lake Discovery."
The Axe Lake Discovery area represents about 13.6 percent
of Oilsands Quest's net permit lands.

This winter's drilling program began on November 3, 2006
with a single drilling rig. Following the Christmas break,
drilling resumed on January 4, 2007.
At the present time, five core hole drilling rigs are at work.
The company expects six rigs to be drilling by the end
of January and eight rigs to be deployed by the end
of February.

The company is making progress toward its goal to drill up
to 100 delineation holes in the area of its original
discovery; it will also shortly begin exploration drilling
to the north and south of the Axe Lake Discovery.
The company has drilling permits for up to another 150
exploratory holes this winter.
Drilling progress has been slower than planned, however,
due largely to tougher drilling conditions.
"We are encountering numerous large boulders in the
overburden in this area," explained Mr. Hopkins.
"As a result, it is now taking about five days to drill
each hole compared to about three days per hole last year.
To offset this effect, we are expanding the use of other
exploration techniques."

This winter, Oilsands Quest will undertake a seismic survey
to identify drilling targets.
In addition, the company has commissioned an airborne
geophysical survey program for late January.
The airborne survey will combine electro-magnetic and
conventional magnetic surveys over a large area of
Oilsands Quest's exploration permits to provide valuable
data to assist in the selection of drill hole locations.

The next update of Oilsands Quest's exploration activities
is planned for mid-February, when the company will again
report the number of holes drilled, an indication of
drilling success and the number of drilling rigs on site.

Oilsands Quest expects to be able to announce detailed
information such as estimates of bitumen resource volumes,
reservoir characteristics and alternatives regarding
commercial potential by October 2007.

Oilsands Quest Inc.
(formerly CanWest Petroleum Corporation)
is conducting the province of Saskatchewan's first major
oil sands exploration program on its oil sands permits,
which are located in northwest Saskatchewan, directly
across the border from the Athabasca oil sands in Alberta.
Oilsands Quest is focused on proving the extension
of commercially viable deposits of oil sands from Alberta
into Saskatchewan.

Forward-Looking Information

Except for statements of historical fact relating to the
company, this news release contains certain "forward-looking
information" within --- should refer to Oilsands Quest's
current annual report on Form 10KSB, which is available at
www.sedar.com
and at www.sec.gov,
for a detailed discussion of these risks and uncertainties
and details regarding the location and extent of
the Oilsands Quest permit lands.

Cautionary Note

Safe Harbor statement under the Private Securities Litigation
Reform Act of 1995: ---- discussed in Oilsands Quest Inc.'s
various filings with the Securities and Exchange Commission.

CUSIP# 678046 10 3

Contacts:
Hedlin Lauder Investor Relations Ltd.
General Inquiries and Retail Investors
Toll Free: 1-800-299-7823
or Office: [phone]
Email: [e-mail]

The Buick Group
Institutional Investors
Toll Free: 1-877-748-0914
or Office: [phone]
Email: [e-mail]

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