Wednesday September 19, 2007
LAFAYETTE, La., Sept. 19 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc. (NYSE: PQ - News) announced today its intention to publicly offer $50 million of Series B cumulative convertible perpetual preferred stock, subject to market conditions, pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. PetroQuest will grant the underwriters of the offering a 30-day option to purchase up to an additional $7.5 million of Series B preferred stock from PetroQuest at the public offering price less the underwriting discount. J.P. Morgan Securities Inc. is acting as sole book-running manager and Howard Weil Incorporated, Johnson Rice & Company L.L.C. and Coker & Palmer, Inc. are acting as co-managers for the offering.
PetroQuest intends to use the net proceeds from the offering to repay the majority of its borrowings outstanding under its bank credit facility and for other general corporate purposes. PetroQuest intends to continue to borrow under the credit facility to fund its 2007 capital expenditures, including the acceleration of its drilling and leasing activities in its longer lived areas in Arkansas, Oklahoma and East Texas.
This news release does not constitute an offer to sell or solicitation of an offer to buy any security, nor will there be any sale of such security in any jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A preliminary prospectus supplement related to the offering is being filed with the Securities and Exchange Commission and will be available on the SEC's website, http://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained from J.P. Morgan Securities Inc. at 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245.
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.
