PetroQuest Energy, Inc. has announced that it produced a Company-record 16.1 Bcfe during the year ended December 31, 2005. This represents a 13% increase over the 14.2 Bcfe produced in 2004 and a 39% compounded annual growth rate in production since the Company's 1998 merger. Approximately 75% of the Company's 2005 production was natural gas and approximately 30% was from long- lived basins.

The Company ended 2005 with 131 Bcfe of proved oil and gas reserves, also a new Company record. Approximately 83% of the proved reserves were natural gas, and approximately 50% were located in long-lived basins. This represents a 29% increase over 2004 for proved reserves and a 38% compounded annual growth rate in reserves since the Company's 1998 merger.

Based primarily on its higher 2005 production rate, PetroQuest expects to post company-record revenues, cash flows and net income for 2005. A news release announcing complete year-end results and a conference call with investors and analysts is scheduled for February 17, 2006.

At December 31, 2005, the Company's independent petroleum engineers estimated the net present value, excluding income taxes, of these reserves was $640 million, using prices ($8.61 per Mcfe and $59.66 per barrel) in effect as of year-end 2005 and discounted 10%. This compares to $326 million at December 31, 2004 using prices in effect ($5.82 per Mcfe and $43.85 per barrel) as of year-end 2004 and discounted 10%.

These amounts include a reduction for estimated plugging and abandonment costs that are also reflected as a liability on PetroQuest's balance sheet at December 31, 2005 and 2004, in accordance with Statement of Financial Accounting Standards No. 143.

The negative reserve revisions during the year were recorded in the Arkoma Basin and our Southeast Carthage Field. The majority of the Arkoma revisions were isolated to the southern portion of the field limits in which the initial hydrocarbon production was lower than projected resulting in lower than anticipated currently bookable reserves.

At Carthage, higher hydrocarbon prices accelerated the payout of a number of wells in which partners own reversionary interests, and therefore faster economic returns resulted in reduced reserve quantities attributable to the Company's interests. Additionally, lower production from certain Carthage wells resulted in negative reserve revisions.