LAFAYETTE, La., March 28, 2016 /PRNewswire/ -- PetroQuest Energy, Inc. (the "Company") (NYSE: PQ) announced today that it is increasing its first quarter 2016 production guidance to approximately 81-82 MMcfe per day (73% gas, 11% oil and 16% NGLs) from its previously issued guidance of 72-76 MMcfe per day. The midpoint of the revised guidance represents an approximate 12% increase from the Company's production rate during the fourth quarter of 2015.
"To be able to increase production guidance without an increase in capital investment underscores the quality of our producing assets," said Charles T. Goodson, Chairman, Chief Executive Officer and President. "Our most recent Cotton Valley wells along with Thunder Bayou continue to outperform our expectations and were the primary drivers for our better than expected first quarter production rate. We have participated in over 600 horizontal wells in a number of resource trends targeting both shales and tight sands. This experience, primarily gained in the Woodford Shale where we have been a leader with our partner, has allowed us to quickly achieve top tier results in the Cotton Valley as evidenced by the consistent improvement in EURs and rates over the last few years. Well performance improvements in the Cotton Valley have coincided with reduced costs on an absolute and a per lateral foot basis. While declining service costs and access to premium equipment have contributed to our success in lowering well costs, our team's execution, leveraging our experience as a horizontal driller, has certainly had a meaningful impact to cost reduction results."
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 Texas, Oklahoma, Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest's common stock trades on the New York Stock Exchange under the ticker PQ.
This news 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. All statements other than statements of historical fact included in this news release are forward-looking statements. Although PetroQuest believes that the expectations reflected in these forward-looking statements are reasonable, these statements are based upon assumptions and anticipated results that are subject to numerous uncertainties and risks. Actual results may vary significantly from those anticipated due to many factors, including our ability to pay dividends on our Series B Preferred Stock, our ability to satisfy the continued listing standards of the New York Stock Exchange with respect to our common stock or to cure any continued listing standard deficiency with respect thereto, the volatility of oil and natural gas prices and significantly depressed oil prices since the end of 2014, our ability to hedge future production to reduce our exposure to price volatility in the current commodity pricing market, our ability to post additional collateral to satisfy our offshore decommissioning obligations, our ability to reduce leverage or refinance our remaining senior notes due 2017, our estimate of the sufficiency of our existing capital sources, including availability under our senior secured bank credit facility and the result of any borrowing base redetermination, our ability to raise additional capital to fund cash requirements for future operations, the effects of a financial downturn or negative credit market conditions on our liquidity, business and financial condition, the declines in the values of our properties that have resulted in and may in the future result in additional ceiling test write-downs, our ability to replace reserves and sustain production, our ability to find oil and natural gas reserves that are economically recoverable, the uncertainties involved in prospect development and property acquisitions or dispositions and in projecting future rates of production or future reserves, our ability to realize the anticipated benefits from our joint ventures or divestitures, the timing of development expenditures and drilling of wells, hurricanes, tropical storms and other natural disasters, changes in laws and regulations as they relate to our operations, including our fracking operations or our operations in the Gulf of Mexico, 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 SEC. PetroQuest undertakes no duty to update or revise these forward-looking statements.
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SOURCE PetroQuest Energy, Inc.