LAFAYETTE, La., Aug. 28 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc. (NYSE: PQ - News) announced today that it has substantially expanded its leasehold position in the Fayetteville Shale trend of the Arkoma Basin by increasing its acreage to over 17,000 net acres which are located primarily in Van Buren County, Arkansas. The majority of the acreage position has been acquired in several transactions during the third quarter, and the Company expects to continue expanding this acreage position.
The Company's drilling activity in the Fayetteville Shale is scheduled to increase over the next several months through participation in a number of non-operated horizontal wells. Additionally, the Company recently began drilling with a second operated rig in the Woodford Shale and expects to continue utilizing two operated rigs in order to accelerate activity in this area.
"We are very excited about the expansion of our acreage position in the Fayetteville Shale," said Charles T. Goodson, Chairman, Chief Executive Officer and President. "This concentrated acreage position, located in the core of this emerging trend, complements our significant presence in the Woodford Shale, and solidifies the Company in two of the most prominent resource plays in North America. We believe our Fayetteville position could ultimately create as much upside as our Woodford position."
Additionally, the Company announced that it is evaluating its strategic alternatives with respect to its gas gathering systems located in the middle of the Woodford Shale trend in southeast Oklahoma. The Company owns and operates approximately 180 miles of gathering systems with current throughput of approximately 30 million cubic feet per day. The Company does not expect to publicly disclose further information regarding the status of the evaluation until a definitive transaction is entered into or the process is completed. There can be no assurances that any particular alternative will be pursued or that any transaction will occur, or on what terms, or as to the timing of any transaction.
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 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 ability to find oil and natural gas reserves that are economically recoverable, the volatility of oil and natural gas prices, declines in the values of our properties resulting in ceiling test write-downs, our ability to replace reserves and sustain production, 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 or dispositions 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.
