April 20, 2004 IPAA Oil & Gas Investment Symposium New
York
Slide 2
2 2 Company Strategy ! Gulf Coast Basin (onshore and Gulf of
Mexico Shelf) and East Texas explorer and developer ! Balanced
growth approach High impact exploration Moderate/low risk
exploitation/development Acquisitions ! Spread risk by selling down
to an average 50% WI in projects ! Operate major projects !
Maintain financial flexibility
Slide 3
3 3 Statistics ! NASDAQ National Market data 12-month average
daily volume 650,000+ shares Market capitalization $175 MM 52-week
range $1.20 - $4.13 ! 77% drilling success rate for five years
ended 12/31/03 ! All sources F&D cost of $1.93 per Mcfe on
129.6 Bcfe added for five years ended 12/31/03 ! 83.3 Bcfe of net
proved reserves at 12/31/03 69% natural gas ! PQUE operates
majority of its reserves } Insiders own approximately 20% of PQUE
equity
Slide 4
4 4 Production and Reserves PRODUCTION RESERVES Oil Gas PUD PDP
& PDNP 44% 5 Yr CAGR 44% 5 Yr CAGR
Slide 5
5 5 Estimated Net Unrisked Reserve Potential
Slide 6
6 6 Opportunity Generation ! Seismic database 8,650 square
miles of 3-D seismic 400,000 linear miles of 2-D seismic ! Acreage
position 60,600 developed acres 89,100 undeveloped acres 26
offshore blocks
Slide 7
7 7 Gulf of Mexico 3 D Seismic Database Houston New Orleans
Lafayette HERCULES JOINT VENTURE I 3,900 square miles 490 OCS
Blocks OTHER SEISMIC DATA 1,340 square miles 148 OCS Blocks TOTAL
GOM SEISMIC 8,140 square miles 1,012 OCS Blocks HERCULES II 2,900
square miles 374 OCS Blocks -
Slide 8
8 8 19 Producing Fields 136 Producing Wells PQUE operated Non
operated - Lafayette Houston New Orleans Major PetroQuest Project
Locations Turtle Bayou Vermilion 376 Falcon Ship Shoal 72 Field
Berry Lake Eagle East Cameron 129 Roux Vermilion 287 Jambalaya
Vermilion 375 Hawk Trout East Cameron 222 Knight & Andouille
Southeast Carthage Field High Island 201 Tasso Ship Shoal 269
Creole Beignet
Slide 9
9 9 2004 Drilling Schedule
Slide 10
10 2004 South Louisiana Drilling Program Henry #1 Discovery
Beignet Fil Gumbo
Slide 11
11 Beignet Prospect O P Q S Siph d. Beignet #1 Shell #7Shell #1
Siph D. Ownership:12.5% WI Objectives:Lower Miocene Gross Unrisked
Reserves: 18 BCFE Developmental 75 BCFE Exploration Shell #1.142
BCFE Siph d. Field Cum: 35.8 BCFE 2.8 BCFE
Slide 12
12 Fil & Gumbo Prospects Ownership: 100% WI Objectives: Tex
W AA Sand Gross Unrisked Reserves: 13 BCFE FIL GUMBO Tex W AA C-1
TYPE LOG CUM: 6.1 BCFE
Slide 13
13 East Cameron 222 Andouille Discovery Vermilion 287 Jambalaya
Ship Shoal 72 Chianti & Shiraz Main Pass 74 Eagle 2 Completing
Lafayette 2004 Gulf of Mexico Drilling Program High Island 201
Tasso Discovery Ship Shoal 269 Creole East Cameron 129 Roux
Slide 14
14 Andouille Discovery CK Sand CM Sand CN Sand DB Sand DC Sand
DJ Sand EA Sand Andouille #1 Ownership: 75% WI Water Depth: 115
Objectives: Upper Pliocene Feet of pay: 95 TVD Andouille #1 CM Sand
CN Sand DB Sand DC Sand DJ Sand
16 Tasso Discovery Ownership: 10% WI Water Depth: 69
Objectives: Lower Rob M Spinnaker #3 Lower Rob M Upper Rob M
Spinnaker #3 6.5 BCF & 29.6 MBO (Cumulative Production to date)
Tasso #1 Completing Walters #1 3.5 BCFE
Slide 17
17 Jambalaya Prospect A PLATFORM PQUE PROPOSED A-1 TYPE LOG
Prospective Section 10400 Sand Ownership: 100% WI Water Depth: 180
Objectives: Mid Pliocene Reserves: 12.2 BCFE Field Cum: 3.5 MMBO,
53 BCF A-1
Slide 18
18 Roux Prospect Ownership: 100% WI Water Depth: 81 Objectives:
Mid Pliocene Gross Unrisked Reserves: 7.1 BCFE TOC A-1 TYPE LOG
ROUX #1 Plio 4 Plio 5 GI Sand CUM: 3.3 BCFE AMPLITUDE SUPPORT
ZILKHA A-1 TOC A-1
Slide 19
19 Creole Prospect Ownership: 30% WI Objectives: CS-2 &
CS-3 Sands Water Depth: 187 Gross Unrisked Reserves: 7 BCFE A-3
TYPE LOG CREOLE #1 PROPOSED CS-2 Sand CS-3 Sand Field Cum: 14.3
MMBO, 263.8 BCF
Slide 20
20 Ship Shoal 72 Field Potential PQUE Drills: 1.Merlot (72, #25
ST) 2.Chardonnay (72, #17 ST) 3.Cabernet (72, #7 ST) 4.Sauvignon
Blanc (72, #6 ST) 5.Chenin Blanc (63, K6 ST) 6.Chardonnay Accel.
(72, #28) 7.Burgundy (72, #27 ST) 8.Bordeaux (87, #5) 9.Port (72,
#11 ST) 10.#26 Recomplete 11.Pinot Grigio 12.Riesling 13.Dolcetto
Salt Dome Base of field pays Existing Field Pays 8,000 13,000
18,000
Slide 21
21 Developmental and Mid-Depth Exploitation Projects: 1.
Chianti 2. Shiraz 3. Zinfandel 4. Sangria 5. Dolcetto North Salt
Dome Base of field pays 8,000 14,000 18,000 Ship Shoal 72 Field
Potential Syrah Prospect Pinot Noir Prospect Dolcetto Discovery
Bordeaux Discovery Net Unrisked Reserve Potential 43 Bcfe Deep
Shelf Opportunities: 1. Syrah 2. Pinot Noir 3. Pinot Blanc Net
Unrisked Reserve Potential 90 Bcfe
23 Ship Shoal 72 Field Central Program Gross Unrisked Reserve
Potential Shiraz22 Bcfe Chianti24 Bcfe CHIANTI SHIRAZ A B AB A B A
B I II III E-3 E-4 E-3/E-4 I-1 H-1 F-2 I-1 H-1 F-2 I-1 H-1 I II
III
Slide 24
24 Southeast Carthage Field ! $23MM Purchase Price ! 29 BCFE
total net proved reserves 13.5 BCFE PDP 3 BCFE PDNP 12.5 BCFE PUD !
Probable and possible reserve potential ! 5.5 MMcfe/day net
production ! 41,500 gross acres (16,400 acres developed) ! Travis
Peak and Cotton Valley Formations $800,000 average well cost 600 -
1,200 MMcfe reserve potential per well
Slide 25
25 Southeast Carthage Field Development Program LOUISIANA TEXAS
Burnett #3 Burnett #4 Burnett #5 2004 Locations LEGEND 2004 Drills
P-DP P-UD P-BP PQUE LEASE POSITION P-NP
Slide 26
26 Southeast Carthage Field Type Log TRAVIS PEAK 6,000-8,500
COTTON VALLEY 8,500-10,000 A C D VAUGHN DAVIS E ROSEBERRY
Slide 27
27 2004 Capital Program Project FocusArea Focus In $ thousands
Exploration $12,600 Development $29,900 Offshore $23,900 Onshore
$18,600 56%44% 70% 30%
Slide 28
28 Financial Flexibility ! Senior Bank Credit Facility !
Borrowing Base at 12/31/03$20.2 Million ! Outstanding Debt at
12/31/03$15.5 Million ! Subordinated Term Credit Facility ! Total
Credit Facility$20 Million ! Outstanding Debt at 12/31/03$12
Million ! Debt/Book Capitalization20% ! Debt/Market
Capitalization18% Debt/Mcfe
Slide 29
29 Revenue
Slide 30
30 Gross Margin and Gross Margin Per Mcfe Gross Margin Per
McfeGross Margin
Slide 31
31 Reserve Life Index (TTM)
Slide 32
32 Summary ! Proven Gulf Coast basin management and technical
team average 25+ years experience ! Extensive inventory of
identified prospects net unrisked reserve potential of 300+ Bcfe !
Existing 3-D database provides foundation for continued prospect
generation ! Appropriate capital structure to continue
opportunistic approach
Slide 33
The information presented herein may contain predictions,
estimates and other forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although the company believes that
its expectations are based on reasonable assumptions, it can give
no assurance that its goals will be achieved. Important factors
that could cause actual results to differ materially from those
included in the forward looking statements include the timing and
extent of changes in commodity prices for oil and gas, the need to
develop and replace reserves, environmental risks, drilling and
operating risks, risks related to exploration and development,
uncertainties about the estimates of reserves, competition,
government regulation and the ability of the company to meet its
stated business goals. April 20, 2004 IPAA Oil & Gas Investment
Symposium New York
