Exhibit 99.1

 

NEWS RELEASE

For further information, contact:	W. Todd Zehnder, Vice President – Corporate Development
	(337) 232-7028, www.petroquest.com

PETROQUEST ENERGY ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION
FOR PREFERRED STOCK OFFERING

LAFAYETTE, LA – October 5, 2007 — PetroQuest Energy, Inc. (NYSE: PQ) announced today the sale of an additional 195,000 shares of its 6.875% Series B cumulative convertible perpetual preferred stock at a price of $50 per share pursuant to the over-allotment option granted to the underwriters in connection with the previously announced public offering of 1,300,000 shares of 6.875% Series B cumulative convertible perpetual preferred stock. PetroQuest has now received in the aggregate approximately $70.7 million of proceeds from the offering, net of underwriting discounts and expenses. J.P. Morgan Securities Inc. acted as sole book-running manager and Howard Weil Incorporated, Johnson Rice & Company L.L.C. and Coker & Palmer, Inc. acted as co-managers for the offering.

PetroQuest intends to use the net proceeds from the offering to repay 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.

This news release does not constitute an offer to sell or solicitation of an offer to buy any security, nor will there be any sale of such security in any jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A prospectus supplement related to the offering has been filed with the Securities and Exchange Commission and is available on the SEC’s website, http://www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus may be obtained from J.P. Morgan Securities Inc. at 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245.

About the Company

PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Arkoma Basin, East Texas, South Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest trades on the New York Stock Exchange under the ticker “PQ.”

Forward-Looking Statements

Statements regarding the use of proceeds, continued borrowings under the bank credit facility, as well as any other statements that are not historical facts in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks, uncertainties and assumptions, many of which are beyond PetroQuest’s ability to control or estimate, and are subject to material changes. Such risks, uncertainties and assumptions include, but are not limited to, management’s discretion over the use of the net proceeds from the offering, and other factors detailed in the registration statement relating to these securities and PetroQuest’s filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. PetroQuest undertakes no duty to update or revise these forward-looking statements.