PetroQuest Energy Says Production Restart Delayed by Downstream Damage

PetroQuest Energy reports that its initial visual assessment of its Gulf Coast production facilities has been completed and there is no major structural damage to any of the Company's major facilities. The Company has, however, discovered damage downstream of its facilities that will delay the restoration of production at several properties as well as damage to structures with minimal production. The Company is currently boarding or attempting to board all of its facilities to complete a more detailed assessment and begin restoring production. Although production will be deferred, the Company believes that it can achieve approximately 80% of pre- storm volumes within seven days. The Company will provide a more detailed assessment and updated production guidance after all facilities have been boarded and more information is obtained from third parties.

The Company has also inspected its Oakbourne and Pelican Point drilling locations. As the rig drilling the Oakbourne prospect has sustained damage, operations will be temporarily suspended while the rig is repaired. The Pelican Point prospect has resumed operations after being evacuated prior to the hurricane. In addition, the Company has spud its Poppy Hills prospect and plans to spud its Chicory and Cayenne prospects during October.

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