LAFAYETTE, La., Oct. 19 /PRNewswire-FirstCall/ -- PetroQuest Energy,
Inc. (NYSE: PQ - News) announced today that the Company is increasing
its third quarter production guidance to approximately 76 Mmcfe
per day from its previously issued guidance of 70-75 Mmcfe per
day.
The Company is currently evaluating its previously released full
year 2006 production guidance and expects to provide an update
in conjunction with its third quarter earnings release.
Drilling activity during the third quarter of 2006 included 16
successful horizontal coalbed methane wells in the Arkoma Basin,
seven successful wells in East Texas, and two successful discoveries
in the Company's Ship Shoal drilling program in the Gulf Coast
region. The Company's The Farm Prospect was determined to be not
commercially productive.
A total of 16 successful wells were drilled in the Arkoma Basin
during the third quarter of 2006 resulting in a 100% success rate.
Drilling continues in the Arkoma Basin with two rigs working full
time in the Hartshorne Coal and one rig drilling three consecutive
wells testing deep horizons, including the Woodford shale. Two
of the three wells will be vertical wells testing both the Caney
and Woodford shales, and one is planned to be a horizontal well
in the Woodford shale.
PetroQuest participated in the drilling and completion of six
wells in the East Texas Basin during the third quarter of 2006.
The Company's Hogan prospect was drilled during the second quarter
and recently began producing at approximately 1,000 Mcfe per day.
Additionally, the Company's Palmer prospect was drilled during
the second quarter and is currently awaiting pipeline connection.
The Company has begun drilling the test well in its Jones prospect
which should be logged during the fourth quarter.
In the Gulf Coast Basin, the Company's Pelican Point prospect
came on-line and is currently producing at a gross rate of approximately
17,000 Mcfe per day. The production rate has declined from an initial
flow rate of approximately 25,000 Mcfe per day, and the flowing
tubing pressure has decreased at a quicker than expected rate.
These decreases suggest lower proved reserves than originally estimated
which indicates compartmentalization of the reservoir being drained
by the first well. PetroQuest has an approximate 18% NRI in the
well. The Company remains optimistic about the project, and the
second well at Pelican Point is currently drilling with results
expected during the first quarter of 2007.
Additionally, the Company has logged two more successful wells
for a total of four successes in its Ship Shoal drilling program
during 2006. Completion operations are underway on the fourth well
and initial production commenced on the first three wells during
the third quarter.
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 December, and the
Company has an approximate 18% NRI.
The Company is currently drilling its Gray Plantation (23% working
interest) in the Gulf Coast Basin, and the well should be logged
during the fourth quarter.
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 Statement
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.
