PetroQuest Energy, Inc. (PQ) announced today that the Company’s bank group has completed its semi-annual re-determination of its borrowing base under its credit facility. As a result, the Company’s $220 million borrowing base has been revised to $190 million, subject to the aggregate commitments of the bank group, which the Company elected to remain unchanged at $170 million. In addition, the Company’s minimum ratio of consolidated current assets to consolidated current liabilities has been amended to the following: 0.75 to 1.0 as the last day of the fiscal quarters ending March 31, 2015 and June 30, 2015, and 1.0 to 1.0 as the last day of any fiscal quarter ending thereafter.
The Company is currently in compliance with the financial covenants under the credit facility. The Company has requested an interim re-determination of the borrowing base which is scheduled to occur by July 1, 2015 and will be based upon the valuation of the reserves attributable to the Company’s oil and gas properties as of July 1, 2015.
The purpose of the interim re-determination is to allow the Company’s Thunder Bayou discovery well to be reflected as a producing asset in the borrowing base. Forecasted production rates from this significant discovery have increased from initial expectations of 25,000 Mcfe/d to approximately 38,000 Mcfe/d. The Company expects to commence production in early May 2015 and is currently constructing production facilities capable of accommodating up to 70,000 Mcf/d.
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 the Arkoma Basin, Texas, Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest trades on the New York Stock Exchange under the ticker PQ.