PETROQUEST

Petroquest has confirmed their prior estimates of oil and gas reserves in its Falcon Prospect in Vermilion 376 offshore Louisiana in the U.S. Gulf of Mexico. The No. 3 well was drilled to a true vertical depth of 4,489 feet by Diamond Offshore's, Ocean Ambassador. A production platform is in progress and first production is expected by the end of 2000. Petroquest is the operator and has a 43 percent working interest.
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