LAFAYETTE, La., Oct. 17, 2016 /PRNewswire/ -- PetroQuest
Energy, Inc. (NYSE: PQ) announced today that it has entered into a
$50 million multi-advance term loan agreement with certain
lenders, and Wells Fargo Bank, National Association, as
administrative agent for such lenders. The loan agreement
provides a multi-advance term loan facility with borrowing
availability for three years of up to $50 million, subject to
compliance with the covenants therein. Any term loans
advanced under the loan facility mature on October 17, 2020. The loan facility
replaces the Company's prior senior secured bank credit facility
with JPMorgan Chase Bank, N.A, which had a borrowing base of
$0, and is secured by the same
collateral that secured the prior facility.
Management's Comment
"Having the ability to create
meaningful liquidity from our asset base is another important step
towards growing the Company," said Charles
T. Goodson, Chairman, Chief Executive Officer and
President. "Through our debt exchanges, we have extended the
maturity on or repaid over 93% of our December 31, 2015 long-term debt. With our
debt maturities extended and enhanced liquidity position in place,
we are now focused on initiating our Cotton Valley drilling program before the end
of the year."
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
Texas, Louisiana and the shallow waters of the
Gulf of Mexico. PetroQuest's
common stock trades on the New York Stock Exchange under the ticker
PQ.
For further
information, contact:
|
Matt Quantz, Manager
- Corporate Communications
|
|
(337) 232-7028,
www.petroquest.com
|
Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact included in
this news release are forward-looking statements. Although the
Company believes that the expectations reflected in these
forward-looking statements are reasonable, these statements are
based upon assumptions and anticipated results that are subject to
numerous uncertainties and risks. Actual results may vary
significantly from those anticipated due to many factors, including
the volatility of oil and natural gas prices and significantly
depressed oil prices since the end of 2014; our indebtedness and
the significant amount of cash required to service our
indebtedness; our estimate of the sufficiency of our existing
capital sources, including availability under our new multi-draw
term loan facility; our ability to post additional collateral to
satisfy our offshore decommissioning obligations; our ability to
initiate our Cotton Valley
drilling program before the end of the year; our ability to hedge
future production to reduce our exposure to price volatility in the
current commodity pricing market; ceiling test write-downs
resulting, and that could result in the future, from lower oil and
natural gas prices; our ability to raise additional capital to fund
cash requirements for future operations; limits on our growth and
our ability to finance our operations, fund our capital needs and
respond to changing conditions imposed by our term loan facility
and restrictive debt covenants; our ability to find, develop and
produce oil and natural gas reserves that are economically
recoverable and to replace reserves and sustain production;
approximately 50% of our production being exposed to the additional
risk of severe weather, including hurricanes, tropical storms and
flooding, and natural disasters; losses and liabilities from
uninsured or underinsured drilling and operating activities;
changes in laws and governmental regulations as they relate to our
operations; the operating hazards attendant to the oil and gas
business; the volatility of our stock price; and our ability to
meet the continued listing standards of the New York Stock Exchange
with respect to our common stock or to cure any deficiency with
respect thereto. In particular, careful consideration should be
given to cautionary statements made in the various reports the
Company has filed with the SEC. The Company undertakes no duty to
update or revise these forward-looking statements.
Click here for more information:
http://www.petroquest.com/news.html?=BizID=1690&1=1
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SOURCE PetroQuest Energy, Inc.