PetroQuest Energy Inc

(PQ)

PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in East Texas, Arkoma Basin, South Louisiana and the shallow waters of the Gulf of Mexico.

PetroQuest was founded in 1985 as a Gulf Coast oil and gas company. From 1985 to 2002 PetroQuest grew its reserves to 69 Bcfe located principally onshore in Louisiana and offshore in the Gulf of Mexico. In 2003, PetroQuest implemented an asset diversification strategy to balance its Gulf Coast and Gulf of Mexico operations with longer lived, lower risk onshore properties. Using the cash flow generated from its Gulf Coast Basin assets, PetroQuest has expanded its asset portfolio to include properties in the Woodford and Fayetteville Shale plays in the Arkoma Basin and it has acquired a significant position in the East Texas Basin where it is pursuing both oil and gas potential.

The strategy has yielded results as PetroQuest has more than doubled reserves since 2002 to 157 Bcfe while production has increased an average of more than 18% per year to 31 Bcfe in 2007. The Company is now focused on expanding its onshore operations with approximately 75% of its $230 million 2008 capital expenditure budget allocated to East Texas and the Arkoma Basin.

PetroQuest Energy L.L.C. engages in the acquisition and exploration of oil and natural gas properties in Gulf Coast basin and offshore Gulf of Mexico. It was formerly known as PetroQuest Energy One, L.L.C. and changed its name to PetroQuest Energy, L.L.C. in December 2000. Prior to that, PetroQuest Energy One was known as American Explorer, L.L.C. and changed its name to PetroQuest Energy One, L.L.C. in 1998, following American Explorer's acquisition by Petroquest Energy, Inc. The company was incorporated in 1995 and is based in Lafayette, Louisiana. PetroQuest Energy L.L.C operates as a subsidiary of PetroQuest Energy Inc.