LAFAYETTE, La., April 21, 2016 /PRNewswire/ — PetroQuest Energy, Inc. (the “Company”) (NYSE: PQ) today announced the closing of the sale of the majority of its remaining Woodford Shaleassets in the East Hoss field (the “Sold Assets”) for gross proceeds of $18 million, subject to purchase price adjustments between the effective date of April 1, 2016, and the closing date. The Sold Assets produced approximately 10 MMcfe/d during the first quarter of 2016. As ofDecember 31, 2015, the Company’s estimated proved reserves attributable to the Sold Assets totaled approximately 19 Bcfe – 81% proved developed with PV-10 of $16 million.
Liquidity Update
At March 31, 2016, the Company had approximately $71 million in cash, pro forma for the gross proceeds received in the Sold Assets divestiture. In addition, the Company continues to have no borrowings outstanding under its bank credit facility.
Non-GAAP Financial Measure
PV-10 is the estimated future cash flow from estimated proved reserves discounted at an annual rate of 10% before giving effect to income taxes. Standardized measure is the after-tax estimated future cash flows from estimated proved reserves discounted at an annual rate of 10%, determined in accordance with GAAP. Management believes PV-10 is useful to investors as it is based on prices, costs and discount factors which are consistent from company to company, while the standardized measure is dependent on the unique tax situation of each individual company. As a result, the Company believes that investors can use PV-10 as a basis for comparison of the relative size and value of reserves to other companies in different basins. The Company also understands that securities analysts and rating agencies use PV-10 in similar ways. Standardized measure is computed at the corporate level based upon the Company’s particular tax attributes. As a result, standardized measure cannot be reconciled to PV-10 for an individual asset due to the difficulty in allocating corporate level tax information to the property level.
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in Texas, Oklahoma,Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest’s common stock trades on the New York Stock Exchange under the ticker PQ.
