Petroquest Energy Inc. (PQ)

[Picassa]

Production Guidance Update

The Company is increasing its first quarter 2009 production guidance to approximately 110 - 112 MMcfe per day from its previously issued guidance of 105-110 MMcfe per day.

Hedging Update

The Company initiated the following commodity hedging transaction during March 2009:

Instrument
Production Period Type Daily Volumes Price
Natural Gas:
April - Dec 2009 Swap 7,500 Mmbtu $4.40

After executing the above transaction, the Company has approximately 17.4 Bcfe of hedged volumes for the remainder of 2009 with an average floor of $7.34 per Mcf and $100 per barrel. Based on the midpoint of the Company's previously issued 2009 production guidance, approximately 67% of the 2009 production has been hedged.