PetroQuest Enters Mississippi Lime, Sells Down Position

Acquired 28,250 leasehold acres in Pawnee County, OK targeting Mississippian lime, gaining 50 BOE/d.

PetroQuest Energy Inc., Lafayette, La., (NYSE: PQ) has closed the acquisition of 28,250 acres of Oklahoma Mississippian lime assets from an undisclosed private seller for $24.1 million.

The assets include leasehold acreage in Pawnee County and feature five saltwater disposal wells. Approximately 4,500 acres are held by production with the remaining acreage subject to multi-year leases.

Also, subsequent to the closing of this acquisition, PetroQuest sold a 50% working interest in the Pawnee County acreage for approximately $14.5 million. After completing this acquisition and subsequent sell-down, the company has approximately 24,000 net acres in Pawnee, Grant and Kay counties in Oklahoma and Sumner County, Kansas.

Production is approximately 50 barrels of oil equivalent per day.

The company plans to begin its initial Mississippi lime drilling program late in the fourth quarter of 2011.

PetroQuest chairman, chief executive and president Charles T. Goodson says, “We are excited about the expansion of our footprint in the Mississippian lime play and look forward to developing this strategic new oil focused asset. The Mississippian lime program has the potential to significantly enhance our liquids production profile and will be executed by our Tulsa team which has consistently delivered top-tier Woodford results.”