LAFAYETTE, La., March 30, 2015 /PRNewswire/ -- PetroQuest
Energy, Inc. (NYSE: PQ) announced today that the Company's bank
group has completed its semi-annual re-determination of its
borrowing base under its credit facility. As a result, the
Company's $220 million borrowing base
has been revised to $190 million,
subject to the aggregate commitments of the bank group, which the
Company elected to remain unchanged at $170
million. In addition, the Company's minimum ratio of
consolidated current assets to consolidated current liabilities has
been amended to the following: 0.75 to 1.0 as the last day of the
fiscal quarters ending March 31, 2015
and June 30, 2015, and 1.0 to 1.0 as
the last day of any fiscal quarter ending thereafter.
The Company is currently in compliance with the financial
covenants under the credit facility. The Company has requested an
interim re-determination of the borrowing base which is scheduled
to occur by July 1, 2015 and will be
based upon the valuation of the reserves attributable to the
Company's oil and gas properties as of July
1, 2015.
The purpose of the interim re-determination is to allow the
Company's Thunder Bayou discovery well to be reflected as a
producing asset in the borrowing base. Forecasted production
rates from this significant discovery have increased from initial
expectations of 25,000 Mcfe/d to approximately 38,000
Mcfe/d. The Company expects to commence production in early
May 2015 and is currently
constructing production facilities capable of accommodating up to
70,000 Mcf/d.
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
Arkoma Basin, Texas, Louisiana and the shallow waters of the Gulf
of Mexico. PetroQuest trades on the New York Stock Exchange
under the ticker PQ.
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 PetroQuest 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
estimate of the sufficiency of our existing capital sources,
including availability under our senior secured bank credit
facility and the result of any borrowing base re-determination, our
ability to raise additional capital to fund cash requirements for
future operations, the effects of a financial downturn or negative
credit market conditions on our liquidity, business and financial
condition, the declines in the values of our properties that have
resulted in and may in the future result in additional ceiling test
write-downs, our ability to replace reserves and sustain
production, our ability to find oil and natural gas reserves that
are economically recoverable, the uncertainties involved in
prospect development and property acquisitions or dispositions and
in projecting future rates of production or future reserves, our
ability to realize the anticipated benefits from our joint
ventures, the timing of development expenditures and drilling of
wells, hurricanes, tropical storms and other natural disasters,
changes in laws and regulations as they relate to our operations,
including our fracking operations or our operations in the
Gulf of Mexico, and the operating
hazards attendant to the oil and gas business. In particular,
careful consideration should be given to cautionary statements made
in the various reports PetroQuest has filed with the SEC.
PetroQuest undertakes no duty to update or revise these
forward-looking statements.
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SOURCE PetroQuest Energy, Inc.