PetroQuest Energy Inc., Lafayette, La., (NYSE: PQ) participated in 28 gross (1.90 net) non-operated wells in the Fayetteville shale during the second quarter and currently has three non-operated rigs working in this area.

PetroQuest performed three recompletions at its Ship Shoal 72 field during the second quarter. The total gross cost for the recompletion work was approximately $600,000 and increased the company’s total gross production from this field by approximately 11 million cubic feet of gas equivalent per day. Additionally, approximately 40% of the incremental production was oil, which should benefit the returns of these recompletion opportunities.

The company expects to spud its Whistling Straits prospect during the third quarter. The well is in the company’s Turtle Bayou Field where it has had multiple high impact discoveries during the past 10 years. PetroQuest has a 24% working interest in the well.

PetroQuest chairman, chief executive and president Charles Goodson says, “Our current working capital surplus, cash flow generating assets and large operated acreage positions allow us the flexibility to continue to control the timing of our investments as we remain focused on building liquidity. In addition to our high impact Whistling Straits prospect, we have assembled an inventory of lower risk projects that we believe could help offset the production and reserve declines that we are currently experiencing as a result of our reduced drilling activity.”

PetroQuest has oil and gas assets in the Arkoma Basin, East Texas, South Louisiana and the shallow Gulf of Mexico.