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EXHIBIT 99.2
NEWS RELEASE
FOR IMMEDIATE RELEASE
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For further information, contact: Charles T. Goodson, Chief Executive Officer
Robert R. Brooksher, Vice President -
Corporate Communications
(337) 232-7028
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PETROQUEST ENERGY ACQUIRES INTEREST IN SHIP SHOAL BLOCK 72 FIELD
Lafayette, Louisiana - December 26, 2000 - PetroQuest Energy, Inc. (Nasdaq:
PQUE, TSE: PQU) today announced its acquisition of an approximate 85% working
interest in Ship Shoal Block 72 Field in Federal waters of the Gulf of Mexico.
The purchase price was $7.1 million with ExxonMobil selling the majority of the
interest and a private company selling the remainder. The Ship Shoal 72 Field
represents approximately 14,500 acres covering portions of five offshore blocks.
Proved reserves of 8.6 Bcfe (67% natural gas) are attributable to the property,
none of which are currently producing. The Company has identified several
workover and recompletion opportunities planned for the first quarter of 2001.
"In addition to the proved reserves associated with this transaction, we
anticipate this property to contribute significantly to our exploration effort
over the next twelve to eighteen months. We have already identified numerous
exploration and exploitation opportunities that we continue to evaluate," said
Charles Goodson, PetroQuest's Chairman and Chief Executive Officer.
Financing for the acquisition was provided by a $10,000,000 subordinated bridge
facility from EnCap Energy Capital Fund III, L.P., which matures November 16,
2001. Upon closing, $7,500,000 was funded under this facility and a $1,000,000
commitment fee was paid to the lender. The loan carries a fixed interest rate of
10%. It is secured by a second mortgage on substantially all of the Company's
oil and gas properties. Additional funding available under this facility will be
used for the development of the Ship Shoal 72 Field.
PetroQuest Energy, Inc. is an independent oil and gas exploration and production
company primarily focused on growing its reserves and shareholder value through
a combination of drilling development locations and high potential exploration
prospects along the coast of and in the Gulf of Mexico.
This press release includes certain statements that may be deemed to be
"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 facts, included
in this press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future,
including drilling of wells, reserve estimates, future production of oil and
gas, future cash flows and other such matters are forward-looking statements.
Such forward-looking statements are subject to certain risks, uncertainties and
other factors, which could cause actual results to differ materially from those
currently anticipated. These factors include, without limitation, uncertainties
inherent in estimating proven oil and gas reserves, future rates of production
and timing of development expenditures; results of exploratory and development
drilling; operating hazards attendant to the oil and gas business; the
successful identification, acquisition and development of properties; and
changes in the price received for oil and/or gas which may effect results of
operations and cash flows. Readers are cautioned that any such statements are
not guarantees of future performance and the company can give no assurances that
actual results or developments will not differ materially from those projected
in the forward-looking statements.
