8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
January 18, 2008

PETROQUEST ENERGY, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State of Incorporation)	72-1440714 (I.R.S. Employer Identification No.)
400 E. Kaliste Saloom Rd., Suite 6000
Lafayette, Louisiana (Address of principal executive offices)	70508 (Zip code)

Commission File Number: 001-32681

Registrant’s telephone number, including area code: (337) 232-7028

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

     On January 18, 2008, PetroQuest Energy, Inc. (the “Company”) issued a press release announcing that drilling operations had been suspended at the La Cantera prospect due to subsurface conditions. The Company and its partners are evaluating re-entering the existing well bore or commencing drilling operations from a new location. A copy of the press release is being filed as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

     (d). Exhibits:

99.1 Press Release dated January 18, 2008.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PETROQUEST ENERGY, INC.
Date: January 18, 2008	By:	/s/ Daniel G. Fournerat Daniel G. Fournerat
		Executive Vice President,
		General Counsel and Secretary

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EX-99.1

EXHIBIT 99.1

NEWS RELEASE

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

PETROQUEST ENERGY PROVIDES UPDATE ON LA CANTERA OPERATIONS

LAFAYETTE, LA — January 18, 2008 — PetroQuest Energy, Inc. (NYSE: PQ) announced today that its company-operated La Cantera (also known as La Posada) prospect located in Vermilion Parish in South Louisiana reached a depth of 15,253 feet and encountered subsurface conditions that have resulted in suspension of drilling operations. The Company and its partners are evaluating re-entering the existing well bore or commencing drilling operations from a new location.

“Our geological assessment of the prospect remains unchanged as the subsurface conditions were encountered significantly above all of our target objectives,” said Charles T. Goodson, Chairman, Chief Executive Officer and President. “We are thoroughly reviewing the situation and will move into the next phase of this project as soon as possible.”

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’s common stock trades on the New York Stock Exchange under the ticker PQ.

Forward-Looking Statements

This press release contains “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 are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our ability to find oil and natural gas reserves that are economically recoverable, the volatility of oil and natural gas prices, declines in the values of our properties resulting in ceiling test write-downs, our ability to replace reserves and sustain production, our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions or dispositions and in projecting future rates of production, the timing of development expenditures and drilling of wells, hurricanes and other natural disasters, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements.