2010-05-25-2010-05-25-2010-05-25

Bought 50% interest in OK Woodford shale JV.

WSGP Gas Producing LLC and NextEra Energy Gas Producing LLC, subsidiaries of NextEra Energy Resources, have acquired a 50% interest in Oklahoma Woodford acreage from PetroQuest Energy Inc., Lafayette, La., (NYSE: PQ) in a new joint venture in a deal valued at $74 million.

NextEra paid $60 million in cash at closing and will pay an additional $14 million in cash on Nov. 30, 2011. If certain performance metrics are achieved, PetroQuest will receive an additional $14 million in cash on Nov. 30, 2011, for a potential total of $88 million

NextEra will fund a share of PetroQuest's future drilling costs during a two-phase program.

During Phase 1 of the drilling program, NextEra will fund a share of PetroQuest's cost to drill and develop undeveloped Woodford acreage up to $54 million, net to PetroQuest's interest. After reaching the funding limit, NextEra can elect to participate in Phase 2 of the joint venture drilling program, where it will fund a share of PetroQuest's drilling costs up to an additional $92.6 million, with elections to continue participation every six months. Both phases of the drilling program contain well-by-well non-consent provisions on behalf of NextEra.

PetroQuest plans to add a second operated rig to the JV area during the next 60 days and third operated rig during the fourth quarter. The estimated impact to the company's 2010 capex budget and production guidance is not expected to be material.

PetroQuest chairman, chief executive and president Charles Goodson says, "We are very excited about our partnership with one of the country's premier energy companies and are looking forward to accelerating the pace of our Woodford development, as well as pursuing additional opportunities in other basins."