PetroQuest Energy Announces Year-End Production Exit Rate and Operations Update LAFAYETTE, La.--(BUSINESS WIRE)--Jan. 16, 2001--PetroQuest Energy, Inc. (Nasdaq:PQUE - news; TSE:PQU - news) reported that the Falcon Platform at Vermilion Block 376 began producing in December 2000 at a rate of 5,700 Mcfe per day net to the Company. This results in a year-end production exit rate of approximately 21,000 Mcfe per day, which represents a 40% increase from the third quarter of 2000 and an 85% increase over year-end 1999. Facilities are being completed at the Jaguar Discovery at Eugene Island Block 147 with first production planned to commence at the end of the first quarter of 2001. The platform at the Jaguar Discovery is expected to produce at a combined rate of between 4,500 and 5,000 Mcfe per day net to the Company. The Company has begun its planned workover and recompletion activities at its recently acquired Ship Shoal Block 72 Field. PetroQuest's first development well is expected to begin drilling in March. The field is a salt dome structure which was discovered in 1948 and has produced 350 Bcfe from 28 horizons ranging in depth of 3,600 feet to 13,500 feet. 2001 plans for this field include two recompletions and workovers, four gas lift opportunities and three to six development wells. PetroQuest identified the above projects using a recently shot 3-D seismic survey. It is currently in the process of completing a proprietary pre-stacked time migration to further define additional exploitation and exploration opportunities. Drilling of the first well at the Orca Prospect in the Tuscaloosa Marine Shale Area has been completed with the well currently producing approximately fifty barrels of oil per day. The well has tested at rates of 200-400 barrels per day. The flow rate may be impaired by shale debris plugging the liners and workover procedures are planned to attempt to increase that rate. The next well at the Valentine Field is expected to begin drilling in late January 2001. This well is planned to be followed by a minimum of three additional wells this year. Two wells are planned in 2001 at the Turtle Bayou Field with the first expected to begin drilling late first quarter subject to rig availability. PetroQuest Energy, Inc. is an independent oil and gas exploration and production company focused primarily on growing its reserves, production and shareholder value through a combination of drilling development locations and high-potential exploration prospects along the coast of and in the Gulf of Mexico. This press release includes certain statements that may be deemed to be ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future, including drilling of wells, reserve estimates, future production of oil and gas, future cash flows and other such matters are forward-looking statements. Such forward-looking statements are subject to certain risks, uncertainties and other factors, which could cause actual results to differ materially from those currently anticipated. These factors include, without limitation, uncertainties inherent in estimating proven oil and gas reserves, future rates of production and timing of development expenditures; results of exploratory and development drilling; operating hazards attendant to the oil and gas business; the successful identification, acquisition and development of properties; and changes in the price received for oil and/or gas which may effect results of operations and cash flows. Readers are cautioned that any such statements are not guarantees of future performance and the company can give no assurances that actual results or developments will not differ materially from those projected in the forward-looking statements. Contact: PetroQuest Energy, Inc. Robert R. Brooksher, 337/232-7028