January 26, 2000

Contact: Curt Burnett
Office: 801-324-5521

Questar Buys Canadian E&P Assets

Questar announced Wednesday that its Canadian exploration and production subsidiary, Celsius Energy Resources Ltd., has purchased all of the outstanding shares of Canor Energy Ltd., an oil and gas exploration company based in Calgary, Alberta.

NI Canada ULC, a subsidiary of Northwest Natural Gas Co., based in Portland, Ore., is the seller. Canor owns and/or operates more than 800 wells primarily in the province of Alberta, as well as in British Columbia and Saskatchewan. Canor's proven reserves are estimated at 61.1 billion cubic feet (Bcf ) equivalent. The acquisition also includes another 6.2 Bcf equivalent of reserves considered probable, about 150,000 net undeveloped acres principally in the province of Alberta, and a substantial seismic inventory. The purchase price for the cash transaction was $87.5 million Canadian (about $61 million U.S.). It is anticipated that Celsius and Canor will be amalgamated into a single entity at some point in the future.

Gary L. Nordloh, president and CEO of Questar's exploration and production subsidiaries, said the newly acquired operation will provide a broader operating and financial base for Questar's existing Canadian activities, particularly in the areas of exploration and exploitation opportunities.