PetroQuest Energy, Inc. Announces Gulf of Mexico Discovery and Operations Update LAFAYETTE, LA – July 14, 1999 - PetroQuest Energy, Inc., (OTCBB: PQUE; TSE: PQU) a fast-growing independent oil and gas company focused along and in the Gulf of Mexico, today announced a natural gas discovery on its Hawk Prospect in Vermilion Block 375. Drilled to a total vertical depth of 5,578 feet, the Hawk Prospect logged 590 feet of gross hydrocarbon pay (425 net) in the objective Trim "A" sand. Development plans are pending. PetroQuest owns a 5% working and net revenue interest. Privately held Spinnaker Exploration of Houston, Texas, is the operator with a 70% working interest and Cheyenne International Corporation of Oklahoma City, Oklahoma has the remaining 25%. PetroQuest President Charles Goodson said, "Hawk represents our commitment to offshore Gulf of Mexico exploration. Our Houston exploration team was integral in this discovery, from assimilation and interpretation of the geophysical data to assembly of blocks to bringing on great partners in Spinnaker Exploration and Cheyenne International." Operations Update The Snapper discovery (High Island Block A494 C-1) was brought online July 2 and is producing at a rate of 15 million cubic feet (MMcf) of gas per day. The Company operates the well and has a 42% working interest in the field. PetroQuest began drilling the CL&F #13 well in its Turtle Bayou Field on July 4. The Company operates the well with a 40% working interest. A total of eight wells have been successfully drilled and completed in Turtle Bayou Field by the Company or its predecessor. The Company exited the June 1999 quarter producing approximately 7 MMcf equivalent per day. The High Island Block A494 C-1 well increases production by 62% to 11.4 MMcf equivalent per day. Final second quarter figures will be released on or about August 16. PetroQuest Energy, Inc. is an oil and gas exploration and production company primarily focused on growing its reserves and shareholder value through a combination of drilling development locations and high-potential exploration prospects along and in the Gulf of Mexico.