PetroQuest Energy Announces First Quarter Results LAFAYETTE, LA – May 4, 2006 - PetroQuest Energy, Inc. (NYSE: PQ) announced today net income for the quarter ended March 31, 2006 of $9,149,000 or $0.19 per share, compared to first quarter 2005 net income of $4,187,000 or $0.09 per share.  Net cash flow provided by operating activities before working capital changes for the first quarter of 2006 was $33,933,000, as compared to $15,512,000 for the comparable 2005 period.  See the attached schedule for a reconciliation of net cash flow provided by operating activities to net cash flow provided by operating activities before working capital changes. Oil and gas sales during the first quarter of 2006 increased 117% to $47,016,000 as compared to $21,672,000 in the first quarter of 2005.  Production for the first quarter of 2006 was 74% higher than production for the comparable period of 2005.  Stated on an Mcfe basis, unit prices received during the first quarter of 2006 were 25% higher than the prices received during the comparable 2005 period.  The increase in production in the first quarter of 2006 as compared to the first quarter of 2005 was the result of the restoration of production at our Main Pass 74 Field in January 2006, the impact of acquisitions of producing properties made during 2005 and production attributable to the 91% drilling success rate we achieved during 2005.  Lease operating expenses for the first quarter of 2006 were $1.20 per Mcfe as compared to $1.16 per Mcfe in the first quarter of 2005.  The increase in lease operating expenses is due to the continued increase in oil field service costs such as labor, transportation, insurance and materials partially offset by increased efficiencies through higher production rates.  In addition, depreciation, depletion and amortization (“DD&A”) on oil and gas properties for the first quarter of 2006 was $3.12 per Mcfe as compared to $2.42 per Mcfe in the first quarter of 2005.  The increase in DD&A during the current year is primarily due to increased costs to drill for, develop and acquire oil and gas reserves. The following table sets forth certain information with respect to the oil and gas operations of the Company for the three-month periods ended March 31, 2006 and 2005: The above sales and average sales prices include additions (reductions) related to gas hedges of $1,039,000 and ($265,000) and oil hedges of ($677,000) and ($1,079,000) for the three months ended March 31, 2006 and 2005, respectively.     Guidance   The following initiates guidance for the second quarter of 2006:   The following updates guidance for the full year of 2006:     Operations Update   Drilling activity during the first quarter of 2006 included 22 successful horizontal coalbed methane wells and three successful non-operated vertical Woodford shale wells in the Arkoma Basin, two successful wells in East Texas, and successful discoveries at the Company’s Cayenne, Pelican Point and Grayhawk Prospects in the Gulf Coast region.  The Company’s Denali and Oakbourne Prospects were determined to be not commercially productive.   A total of 25 wells were drilled in the Arkoma Basin during the first quarter of 2006 of which the Company attained a 92% success rate.  Production in this basin averaged approximately 9,000 Mcf per day during the quarter.  Drilling continues in the Arkoma Basin with two rigs working full time in the Hartshorne Coal, and the Company is currently drilling its first operated Woodford Shale test well.  This vertical well designed to test several objectives should reach total depth within two weeks.   PetroQuest operated the drilling and completion of two wells in the East Texas Basin.  Net production in this basin averaged approximately 11,500 Mcfe per day during the quarter.  Subsequent to quarter-end, PetroQuest drilled and completed two more wells in its Southeast Carthage Field and has also logged pay in its Palmer Prospect that encountered apparent productive sands in the Cotton Valley and Travis Peak formations.    As previously announced, the Company’s Pelican Point prospect was drilled and is currently being completed in the Rob L objective.  The well is expected to begin producing during June at a gross rate of approximately 10,000 to 15,000 Mcfe per day.  PetroQuest has an approximate 18% net revenue interest (NRI) in the well.  Also as previously announced, the Company’s Grayhawk Prospect in the Gulf of Mexico was drilled to a total depth of approximately 18,200 feet, logging 132 feet total vertical depth of net productive sands.  The well is expected to begin producing during July, and the Company has an approximate 18% NRI.   The Company is currently drilling its English Turn Prospect (56% working interest) and its Pacific Grove Prospect (25% working interest) in the Gulf Coast Basin.  Additionally, the Company has begun its drilling programs in both the West Cameron and Ship Shoal areas with a success on the first well in the West Cameron drilling program.  The initial well was drilled during April to 6,000 feet, logging approximately 183 feet total vertical depth of net productive sands.  The Company has an approximate 20% NRI in the well which is expected to begin producing later this year.    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 New York Stock Exchange under the ticker symbol “PQ.”   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, hurricanes and other natural disasters, 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.  PETROQUEST ENERGY, INC. Consolidated Balance Sheets (unaudited) (Amounts in Thousands) PETROQUEST ENERGY, INC. Consolidated Statements of Income (unaudited) (Amounts in Thousands, Except Per Share Data)                                                                                                PETROQUEST ENERGY, INC. Consolidated Statements of Cash Flows (unaudited) (Amounts in Thousands)       PETROQUEST ENERGY, INC. Non-GAAP Disclosure Reconciliation (Amounts In Thousands)     Note:    Management believes that net cash flow provided by operating activities before working capital changes is relevant and useful information, which is commonly used by analysts, investors and other interested parties in the oil and gas industry as a financial indicator of an oil and gas company’s ability to generate cash used to internally fund exploration and development activities and to service debt.  Net cash flow provided by operating activities before working capital changes is not a measure of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”) and should not be considered in isolation or as an alternative to net cash flow provided by operating activities.  In addition, since net cash flow provided by operating activities before working capital changes is not a term defined by GAAP, it might not be comparable to similarly titled measures used by other companies.

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