LAFAYETTE, La., Oct. 23, 2017 (GLOBE NEWSWIRE) — 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:
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 Update
During 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.
The Company recently initiated the following commodity hedging transaction:
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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.
“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 Company
PetroQuest 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.