PetroQuest Energy Announces Approximately 41 Mmcfe/d Combined Rate From Three Latest Cotton Valley Wells, Updates Third Quart...
October 23 2017 - 4:01PM
PetroQuest Energy, Inc. (NYSE:PQ) announced today results from its
horizontal Cotton Valley drilling program in East Texas. The
Company completed a two well pad (PQ #26 & PQ #27 - average
NRI: 59%) which established a cumulative maximum 24-hour gross
daily rate of 17,207 Mcf of gas, 1,266 barrels of NGLs
and 205 barrels of oil, for an equivalent rate of 26,033
Mcfe/d. PQ #26 and #27 represent the initial wells in the Company’s
northern most JV acreage. In addition, the Company commenced
flowback on its PQ #28 well (NRI: 58%) in early October. To
date, the well has established a maximum 24-hour gross daily rate
of 10,912 Mcf of gas, 689 barrels of NGLs and 51 barrels of oil,
for an equivalent rate of 15,352 Mcfe/d. The three wells had
an average lateral length of 6,163 feet and the Company estimates
an average drill and complete cost of $893 per lateral foot. The
initial maximum 24-hour gross daily rates and certain additional
operating data per well were as follows:
Well |
Max 24-Hour Mcfe/d |
Lateral Length (ft) |
Lbs Proppant/foot |
Cluster Spacing (ft) |
Bench Tested |
PQ #26 |
12,704 |
6,812 |
1,005 |
100 |
E-Berry |
PQ #27 |
13,330 |
6,748 |
1,331 |
75 |
E-Berry |
PQ #28 |
15,352 |
4,928 |
1,014 |
75 |
E-4 |
The Company has reached total depth on its PQ
#29 well (WI – 77%) and is currently drilling its PQ #30 well (WI –
74%), which will be the final well of its 2017 Cotton Valley
drilling program. The Company expects to complete these two wells
during the first quarter of 2018. Based upon the wells
completed to date, the Company estimates its third quarter 2017
daily production from East Texas was 63% higher than the fourth
quarter of 2016.
3Q17 Production Guidance
UpdateDuring August 2017, the Company experienced
shut-ins at the majority of its Gulf of Mexico fields associated
with Hurricane Harvey. In addition, during portions of August and
September 2017, the Company’s West Delta 89 field was shut-in as a
result of a fire on a third-party platform. The Company
estimates Gulf of Mexico down-time related to the events above
totaled approximately 2.4 MMcfe per day during the third quarter of
2017. All of the impacted production has been restored. As a
result of the down-time, the Company projects its third quarter
2017 production will average between 81 - 82 MMcfe per day as
compared to its previous guidance range of 80-84 MMcfe per
day.
Hedging UpdateThe Company
recently initiated the following commodity hedging transaction:
Production Period |
|
Type |
|
Daily Volumes |
|
Price |
Oil: |
|
|
|
|
|
|
2018 |
|
Swap |
|
250
Bbls |
$ |
55.00 |
After executing the above transaction, the Company has 91,250
Bbls of oil hedged for 2018 at an average floor price of
$55.00/Bbl. In addition, the Company has approximately 3.2
Bcf of natural gas hedged for the first quarter of 2018 at an
average floor price of $3.24/Mcf.
Management’s Comment“We are
very pleased with the results from our 2017 Cotton Valley drilling
program. We implemented multiple operational options including
longer laterals, larger proppant concentration, pad drilling and
tighter perforation cluster spacing. We obtained
micro-seismic data, which we are continuing to analyze to refine
our completion design. Most importantly, we executed
extremely attractive wells in terms of high productivity and low
costs,” said Charles T. Goodson, Chairman, Chief Executive Officer
and President. “Two of our most recent wells, PQ #25 and PQ #28,
achieved Company records in initial maximum 24-hour gross daily
rates of 18.3 MMcfe/d and 15.4 MMcfe/d, respectively, and from a
cost perspective, the entire program of wells drilled and completed
during 2017 averaged $857 per lateral foot, nearly 15% below our
goal of $1,000 per lateral foot.”
About the CompanyPetroQuest
Energy, Inc. is an independent energy company engaged in the
exploration, development, acquisition and production of oil and
natural gas reserves in the 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.
Forward-Looking StatementsThis 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 execute our 2017 drilling and
recompletion program as planned and to increase our production; our
ability to hedge future production to reduce our exposure to price
volatility in the current commodity pricing market; our ability to
find, develop and produce oil and natural gas reserves that are
economically recoverable and to replace reserves and sustain and/or
increase production; 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 multi-draw term loan facility
and restrictive debt covenants; more than 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.
For further information, contact:
Matt Quantz, Manager - Corporate Communications(337) 232-7028,
www.petroquest.com