Arlington, TX (PRWEB) October 29, 2007
PetroQuest Resources, Inc. (Computer Pink Sheets: PQRJ.PK), announced today that Mountaineer Gas Transmission, Inc., its wholly owned gas and oil production subsidiary, has finalized the acquisition of 100% of the working interest in five gas and oil wells in Vinton County, Ohio for the purchase price of $150,000.00. These wells were placed under contract, subject to due diligence inspection and review, earlier this month. These newly acquired gas and oil wells hold oil and gas leases on approximately 520 acres. This acreage gives the Company 7 - 8 high quality future drilling sites.
The Company (http://www.PetroQuestRes.com) plans to make the gas produced from these wells available for sale directly to an industrial end-user. Without performing any significant post-closing work on these wells, it is anticipated that they will generate approximately $125,000.00 of net income per year from sales of natural gas produced and an undetermined amount of marginal net income from sales of oil produced. Based on reports received from geologists and petroleum engineers, the Company's Management is of the opinion that the probable production from any new wells drilled on the surrounding leased acreage will be as set forth below:
- $41,310/well/month (Months 1-12)*: Anticipated production is 100 mcf/day of natural gas and 25 bbls of oil/day 28 days per month
- $27,948/well/month (Months 13-24)*: Anticipated production is 80 mcf/day of natural gas and 16 bbls of oil/day 28 days per month
- $21,488/well/month (Months 25-48)*: Anticipated production is 60 mcf/day of natural gas and 12.5 bbls of oil/day 28 days per month
- $18,350/well/month (Months 49-120)*: Anticipated production is 60 mcf/day of natural gas and 10 bbls of oil/day 28 days per month
- $13,661/well/month (Years 11 - 20)*: Anticipated production is 45 mcf/day of natural gas and 7.5 bbls of oil/day 28 days per month
*Based on natural gas sales at $6.00/mcf and sales of oil at $55.00/bbl, less a 12.5% landowner's royalty, less 6% state taxes, less 20% transportation fee for the gas, and less $400 per month operating cost.
For more information, please contact Tommy L. McDonald, the Secretary of PetroQuest Resources, Inc., at the address and telephone number shown below:
Mr. Tommy L. McDonald
PetroQuest Resources, Inc.
1112 East Copeland Road
Arlington, Texas 76011
(817) 795-0154 (Fax)
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, the potential for additional customer growth from acquired operations and additional opportunities for growth. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: general economic business conditions, unfavorable weather conditions, the success of certain cost containment initiatives, changes in regulations or regulatory treatment, availability and the cost of capital, the success of growth initiatives, and other factors discussed in our filings with the Securities and Exchange Commissions. Additionally, this release may not be considered as legal, accounting, or investment advice, and is not, and may not be considered, a solicitation for the purchase of any securities issued by PetroQuest Resources, Inc.