Thunder Bayou Delivers
Thanks largely to continued outperformance at the Thunder Bayou well, PetroQuest Energy, Inc. (ticker: PQ) is increasing its second quarter 2016 production guidance to 65 – 66 MMcfe per day (71% gas, 11% oil and 18% NGLs) from its previously issued guidance of 61 – 65 MMcfe per day (72% gas, 11% oil and 17% NGLs).
In a press release today, the company said Thunder Bayou is currently flowing at a gross rate of approximately 30 MMcfe/d (NRI-37%) and its production profile continues to exceed expectations. PetroQuest is revising the timing of its recompletion into the upper section of the Cris R-2 formation (154 net feet of pay) to the fourth quarter of 2016.
The company said it expects this recompletion to significantly increase the well’s current production rate and the work is budgeted to cost approximately $800,000 (WI-50%).
2016 Capital Expenditures Update
In an effort to preserve liquidity, PetroQuest has deferred certain of its Gulf of Mexico P&A obligations that were originally scheduled for 2016 until 2017. As a result, the Company is reducing its 2016 capital expenditure guidance to $15 million – $20 million from its previously issued guidance of $20 million – $25 million.
PetroQuest Energy has oil and gas properties in Texas, Oklahoma, Louisiana and the shallow waters of the Gulf of Mexico. The company will be presenting at EnerCom’s The Oil & Gas Conference® on Tuesday, August 16, 2016, in Denver, the 21st Denver EnerCom conference.
