PetroQuest Sells Valentine Field
PetroQuest Energy, Inc. has sold its interest in Valentine Field to an Samson Investment Company for $18.6 million effective January 1, 2002.
At December 31, 2001, the Company's independent reservoir engineering firm attributed 7.3 Bcfe of proved reserves net to the Company's interest in this field.
"This is an opportunity for us to high-grade our prospect inventory at an attractive price. Our 2002 capital budget included the drilling of only one well in Valentine Field," said Charles Goodson, PetroQuest's Chairman and Chief Executive Officer. "We have achieved a greater than 70% internal rate of return on our investment in this field since its acquisition in 1996. With the proceeds from this sale, we are well positioned to accelerate existing opportunities in PetroQuest's project inventory as well as capitalize on additional opportunities to further our reserve and production growth."
The field is currently producing approximately 5,750 Mcfe per day net to the interest sold. As a result of this transaction, the Company's previously issued 2002 production guidance is revised to 41.0-42.0 MMcfe per day in the first quarter and 44.0-47.0 MMcfe per day for the full year.