PetroQuest Energy, Inc. announced today that it has completed operations on its first two test wells in the Niobrara formation. The wells were designed to test differing geologic concepts relative to natural fracturing. The initial test well (Peterson #1- WI-25%) was selected to evaluate a location with less expected natural fracturing. The 4,962 foot lateral well was completed in November, but did not produce oil in commercial quantities.
The second well (Nevis #2, NRI-20%) was drilled approximately 15 miles from the Peterson #1 and tested a location where more natural fracturing was expected. The well was drilled with a 5,298 foot lateral section (20 frac stages) and was completed at an initial 24 hour gross daily rate of 831 barrels of oil and 205 Mcf of gas after cleaning up. Through the first two weeks of production, the well has averaged approximately 570 barrels of oil per day and is currently flowing at 407 barrels of oil per day. The Company estimates that the average gross cost per well for the initial two test wells was approximately $4.5 million.
Based on the results of the Nevis #2, the Company plans to proceed with a development plan in 2011 on its Niobrara acreage. The Company has a 25% non-operated working interest in approximately 20,000 gross acres (5,000 net acres) located in Southern Wyoming. Based on initial plans, the Company expects to participate in 12-15 gross wells during 2011. The Company expects to spud its third well (Hester #3, WI-25%) in January 2011.
"We are excited to announce our initial Niobrara well results and are looking forward to developing and growing our position in this oil rich asset," said Charles T. Goodson, chairman, chief executive officer and president of PetroQuest. "With 12-15 Niobrara wells planned for next year, our goal is to significantly impact our 2011 liquids production, while continuing to deliver our top-tier results in the Woodford trend."
Other Shale Activity
The Company has reached total depth on its forty-third Woodford operated horizontal well (4,592 foot lateral). The Company expects to complete its forty-second (5,068 foot lateral) and forty-third Woodford operated wells before year-end. In addition, the Company has taken delivery of its second Woodford rig and recently spud its forty-fourth Woodford operated well. To date, the Company has drilled 43 gross operated horizontal wells and participated in 38 non-operated horizontal wells in the Woodford. The Company's total horizontal well count represents approximately 9% of all horizontal wells drilled in the trend.
In East Texas, the Company is currently completing its first non-operated horizontal Cotton Valley well (2,592 foot lateral) (WI-30%). The Company's second non-operated horizontal Cotton Valley well has been delayed due to the lack of availability of pumping services. The Company expects to spud the well during the first quarter of 2011. In addition, the Company has reached total depth on its non-operated vertical Travis Peak/Cotton Valley combination well (WI-26%) and expects to commence completion activities during the first quarter of 2011.
About PetroQuest
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, Wyoming, South Louisiana and the shallow waters of the Gulf of Mexico.
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