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PetroQuest Energy, Inc. (NYSE: PQ) announced its estimated proved reserves and production volumes for the full-year 2011.

During 2011, PQ grew its proved reserves 37% YOY to 265 Bcfe (61% proved developed) and reported its PV-10 is approximately $341.3 million. PQ’s 2011 proved reserves are the highest the company has ever reported. The company’s total proved reserves are estimated to comprise 91% natural gas, 3% oil and 6% NGLs. OAG360 notes that PQ exceeded its forecasted proved reserves growth rate of 25%.

On the drill-bit front, PQ replaced approximately 340% of its reserves during 2011 at an average cost of $1.64 per Mcfe. During 2011, PQ produced approximately 30.2 Bcfe (82.7 MMcfe/d), including Q4’11 production of 8.0 Bcfe (87 MMcfe/d). Production volumes during Q4’11 comprised 83% natural gas, 9% oil and 8% liquids, providing a solid stepping stone for PQ into 2012.

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OAG360 Comments:

Although PQ’s total 2011 production volumes were approximately 2.6% lower than its total 2010 production volumes, PQ’s 2011 daily production of 82.7 MMcfe/d was well within PQ production guidance of between 80 MMcfe/d to 88 MMcfe/d. OAG360 notes that PQ’s Q4’11 production was 87 MMcfe/d falling on the high side of expectations.

2012 should prove to be an exciting year for PQ investors as they should learn more about the company’s plans for the Mississippi Lime and what future liquids potential the play could have on its commodity diversification.

We will wait for the company’s 2011 year-end and fourth quarter results and conference call to discuss the company’s operational results and what impact these plays could have on PQ’s expansion efforts.


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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.