PetroQuest to Sell $50 Million in Series B Preferred Stock

PetroQuest Energy (NYSE: PQ) intends to publicly offer $50 million of Series B cumulative convertible perpetual preferred stock, subject to market conditions, pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. PetroQuest will grant the underwriters of the offering a 30-day option to purchase up to an additional $7.5 million of Series B preferred stock from PetroQuest at the public offering price less the underwriting discount. J.P. Morgan Securities Inc. is acting as sole book-running manager and Howard Weil Incorporated, Johnson Rice & Company L.L.C. and Coker & Palmer, Inc. are acting as co-managers for the offering.

PetroQuest intends to use the net proceeds from the offering to repay the majority of its borrowings outstanding under its bank credit facility and for other general corporate purposes. PetroQuest intends to continue to borrow under the credit facility to fund its 2007 capital expenditures, including the acceleration of its drilling and leasing activities in its longer-lived areas in Arkansas, Oklahoma and East Texas.

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