PetroQuest Completes $280M Sale

Lafayette, La.-based PetroQuest Energy Inc. in June closed the sale of the majority of its interests in the Woodford and Mississippian Lime for $280 million, subject to estimated purchase price adjustments.

According to the company, the assets produced approximately 46 million cubic feet equivalent per day and generated net operating cash flow of approximately $7.5 million during the first quarter of this year.  In addition, the company’s estimated proved reserves attributable to the assets as of Dec. 31, 2014, totaled approximately 227 billion cubic feet equivalent – 63% proved developed – with estimated discounted net cash flow (PV-10) of $249 million, using SEC pricing of $3.58 per million cubic feet of gas, $21.47 per barrel of natural gas liquids and $93.48 per barrel of oil.

PetroQuest said it will retain a small working interest in the assets as well as maintain its working interest in the Woodford assets located on the east side of its acreage position – East Hoss.  As a result, the company will continue to drill and operate all wells throughout its Woodford acreage position under a services agreement.

PetroQuest said it is in the process of flowing back eight wells – average NRI 14% – in the East Hoss area, with two rigs expected to continue working for the remainder of 2015.