Lafayette, Louisiana -- August 4, 1999 -- PetroQuest Energy, Inc. (OTCBB: PQUE; TSE: PQU), announced today the initial funding of a private placement of 5 million units at a purchase price of $1.00 per unit for a total consideration of $5,000,000 before fees and expenses. $4,000,000 of the total consideration was received yesterday with the remaining funds expected to be received within the next two weeks. The proceeds from the private placement will be used for drilling and exploration costs, delay rentals on oil and gas leases and working capital and general corporate purposes.
Each unit sold in the private placement consists of one share of the Company’s common stock and one warrant exercisable to purchase one-half a share of the Company’s common stock. Each warrant is exercisable at any time through the fourth year after issuance to purchase one-half of a share of the Company’s common stock at a per share purchase price of $1.25. In addition, the Company has agreed to file a registration statement covering the resale of the Company’s common stock underlying the units and the shares of Company common stock issuable on exercise of the warrants within 60 days after the closing of the private placement. The securities offered pursuant to the private placement will not be or have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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.
