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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