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PetroQuest Energy (NYSE: PQ) announced the Thibodeaux #1 discovery well at the La Cantera prospect (17% NRI) in South Louisiana is currently flowing at a gross daily rate of approximately 31 MMcfe/d (26% oil and liquids) – the high end of company expectations (20 MMcfe/d to 30 MMcfe/d).

PQ and partners are currently drilling an unbooked development location on La Cantera. The Broussard Estates #2 well (24% WI) is drilling at approximately 13,000 feet, and expected to reach total depth of 18,900 feet late Q2’12.

Mississippian Lime Activity:

PQ is acquiring additional Mississippian Lime acreage in Northern Oklahoma. Currently, PQ has 33,800 net acres (up from 31,000 net acres as reported in Q4’11) and completed its first well to test the log data and well interval in the Lime. This well was later deepened and turned into a water injection well.

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In Pawnee County (48% WI), PQ has initiated its first horizontal well which is expected to be completed in mid-April 2012. This well will be drilled with a 3,600 foot horizontal lateral and completed with 10 frac stages. PQ plans to ramp up activity as it brings in a second rig in two weeks to drill a total of 12 to 15 wells in 2012. In its year-end conference call, PQ guided for its initial Mississippian well costs to average $3.5 million per well. PQ’s JV extension into the Mississippian provides a further source of liquidity, as its JV partner will carry the company on $92.6 million of drill costs in both its Mississippian and Woodford acreage.

Production Guidance:

PQ has narrowed its Q1’12 production guidance to average between 88 MMcfe/d and 90 MMcfe/d, as compared to its original production guidance of 86 MMcfe/d and 90 MMcfe/d. Using PQ’s midpoint guidance for 2012, the company plans to drill approximately 70 gross wells in 2012 with a CAPEX budget of $95 million.


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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.