LAFAYETTE, La., April 22 /PRNewswire-FirstCall/ -- PetroQuest Energy,
Inc. (Nasdaq: PQUE - News) announced today that the Company has
executed agreements to acquire from private companies their interests
in natural gas properties located in the Arkoma Basin of Oklahoma
for an aggregate amount of approximately $22 million in cash. The
Company expects to allocate approximately 50% of the purchase price
to unevaluated acreage. PetroQuest estimates it is acquiring approximately
6.7 Bcf of proved reserves, of which 61% are proved developed producing
and 100% are natural gas. Development costs for the proved undeveloped
reserves are estimated at $0.88 per Mcf. The acquisitions are expected
to add approximately 2 MMcf per day to the Company's production.
In related transactions, the Company is also acquiring five separate
systems that gather and transport gas from the properties for an
aggregate of approximately $6 million in cash. These systems currently
generate throughput fees from third parties in the area.
The purchase prices for the transactions are subject to adjustment
for, among other things, expected cash flows between the effective
dates of the transactions and their respective closing dates. As
a result, we estimate that the final aggregate purchase price for
the transactions, following all post-closing adjustments, will be
approximately $27.0 million. The transactions are scheduled to close
by June 1, 2005.
"These acquisitions expand our existing operations in the Arkoma
Basin, adding approximately 8,900 net acres in close proximity to
our current acreage position and approximately 50 miles of pipeline
and gathering infrastructure in the basin. This will bring our total
ownership to approximately 21,000 net acres and 108 miles of pipeline
in the area. We have to date identified approximately 250 development
locations on the acquired properties," said Charles T. Goodson,
Chairman, Chief Executive Officer and President. "We are excited
about the activity in this core area and our continued success in
the basin during 2005. These acquisitions allow us to move from
one rig in January 2005 to three rigs by the end of the second quarter
in the Arkoma Basin."
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged
in the exploration, development, acquisition and production of oil
and natural gas reserves in the Arkoma Basin, East Texas, South
Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest
trades on the Nasdaq National Market under the ticker symbol "PQUE".
Forward-Looking Statements
This press release contains "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. These forward-looking statements are subject to certain
risks, trends and uncertainties that could cause actual results
to differ materially from those projected. Among those risks, trends
and uncertainties are our estimate of the sufficiency of our existing
capital sources, our ability to raise additional capital to fund
cash requirements for future operations, the uncertainties involved
in estimating quantities of proved oil and natural gas reserves,
in prospect development and property acquisitions and in projecting
future rates of production, the timing of development expenditures
and drilling of wells, and the operating hazards attendant to the
oil and gas business. In particular, careful consideration should
be given to cautionary statements made in the various reports PetroQuest
has filed with the Securities and Exchange Commission. PetroQuest
undertakes no duty to update or revise these forward-looking statements.
Source: PetroQuest Energy, Inc.
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