LAFAYETTE, La., Oct. 14 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc.
(Nasdaq:
)
today announced that the Company has acquired from a private company its
interest in natural gas properties located in the Arkoma Basin of Oklahoma
for approximately $13.5 million. The Company expects to allocate approximately
$2 million of the purchase price to unevaluated acreage. In this transaction,
PetroQuest estimates it is acquiring approximately 8.8 Bcf of proved reserves,
of which 47% are proved developed producing and 100% are natural gas.
Development costs for the proved undeveloped reserves are estimated at
$0.74 per Mcf. The acquisition will initially add approximately 1.5 MMcf
per day to the Company's production. The purchase was funded by PetroQuest's
revolver under its senior bank credit facility, the borrowing base of
which was increased from $25 million to $38 million. The acquisition of
the properties is subject to a 12.5% election to participate by the Company's
partners in an area of mutual interest, which includes the acquired properties.
"This acquisition expands our existing operations in the Arkoma Basin,
adding approximately 6,000 net acres adjacent to our current acreage
position and approximately 28 miles of pipeline and infrastructure
in Pittsburg County, Oklahoma. This brings our total ownership to
over 12,000 net acres and 36 miles of pipeline in the area. The reserve
to production ratio of the properties acquired is approximately 16
years based on current production, which will increase PetroQuest's
overall reserve to production ratio," said Charles T. Goodson, Chairman,
Chief Executive Officer and President. "We are excited about the activity
in this core area having drilled and completed 10 wells since May
2004. We plan to add a second rig and drill approximately 50 horizontal
coalbed methane wells in the Hartshorne Coal Formation by the end
of 2005 on our acreage position. Also, we have identified thus far
approximately 25 probable and possible reserve locations, including
coalbed methane and other prospective horizons."
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.
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.
