November 2006

400 East Kaliste Saloom Road, Suite 6000

Lafayette, Louisiana 70508
Phone: (337) 232-7028
Fax: (337) 232-0044

www.petroquest.com

NYSE: PQ

Corporate Contact: Todd Zehnder

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, the impact of inclement weather conditions including hurricanes, drilling and operating risks, uncertainties about the estimates of reserves, competition,  environmental risks, government regulation and the ability of the company to meet its stated business goals.

Opening Remarks

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Corporate Characteristics

Historically, our growth has come through the drill bit and strategic acquisitions

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7-year historical drilling success – 88%

7-year F&D and Reserve Replacement – $2.52/Mcfe and 255%

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Added resource play acreage to growth profile – closed 12 acquisitions (68 Bcfe) since December 2003 (blended cost of $1.44/Mcfe)

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Top quartile operator among peers

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Highly experienced team with proven track record for generating shareholder returns 

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3

Merger

$0.81

$5.32

$811

$163

$12.28

Adding Up Our Milestones

4

Seven Years of Growth

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Reserves      38% CAGR

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Production       39% CAGR

Cash Flow       137% CAGR

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Shareholders’ Equity      35% CAGR

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Stock price       39% CAGR

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Optimize Existing Production

Development Drilling

Resource Play Development

Synergistic Acquisitions

Exploration Program

Increases in Corporate Metrics

Company Growth Strategy

6

Arkoma

Basin 

East Texas

Gulf Coast

Region 

Lafayette

Houston

New Orleans

Non-operated

PQ operated

We have grown beyond being soley a Gulf Coast Basin company -

8.1 r/p Ratio at 12/31/05

50% Reserves

50% Reserves

Our Properties

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EAST TX

ARKOMA

South

Louisiana

Offshore

GOM

UNCONVENTIONAL PLAYS

Proved

Reserves (1)

Drilling

Locations (1)

Yearly

Prod. (2)

EAST TEXAS

ARKOMA

SOUTH LOUISIANA

OFFSHORE GULF OF MEXICO

Three

separate

basins - all

poised for

growth 

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Gulf Coast

Net Unrisked

Inventory (1)

(1) Reserves as of December 31, 2005; inventory and locations as of September  30, 2006  (reserves and inventory in Bcfe) 

(2) Based on guidance for 2006  (70 – 72 MMcfe/day)

40.1

25.4

14.5

50.9

130.9

346

617

184

240

1,387

252

479

22

35

788

Our Portfolio

Three

separate

basins - all

poised for

growth

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8

Propelling our Future Growth

Approximately 40% of projected reserve growth will come from new "resource" plays

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50% of our reserves are in long-lived basins

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To date – 94% drill bit success rate in long-lived areas

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31% of our daily production is from these areas

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Concentration in three core areas with significant control of operations

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Large acreage positions with expansion potential

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Facilities ownership and control

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Value adding potential through technology improvements in long-lived areas

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9

Oklahoma

Arkansas

Approximately 35,000 net acres in the Hartshorne Coal

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Approximately 500 Hartshorne Coal locations identified

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One rig working full time in the Hartshorne Coal

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Typical economics: .6 Bcf; $600,000 completed well cost; 150-500 Mcf/day I.P. rate

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Additional upside in other horizons (Cromwell, Booch)

Operate 152 miles of gathering system

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Current production of ~9,000 Mcf/day; increasing monthly

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Hartshorne

Coal

Arkoma

Basin

Arkoma Basin

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Horizontal Coal Bed Methane Well Economics

 Capital Expenditure   $0.6MM

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 Reserves  0.6 Bcfe

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 F&D Cost (per Mcf)   $1.00

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 LOE    $0.65 / Mcfe

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 I.P. Rate        0.25 MMcfe/d

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 Reserve Life  25 years

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Gas Price (per Mcf)

Arkoma Basin

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Arkoma Basin

Caney / Woodford Shale

PQ acreage

LEGEND

Caney Woodford

Shale Trend

Fayetteville

Shale Trend

Barnett

Shale Trend

Texas

Oklahoma

Arkansas

Arkoma Basin – Emerging Resource Play

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East Texas Basin

62,000 gross acres; anchored by SE Carthage Field

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13 MMcfe/day net production (average of 2^nd quarter)

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12,500 Mcfe/day net production in SE Carthage Field

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500 Mcfe/day net production in other areas

Travis Peak and Cotton Valley Formations

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$1.9 MM average well cost – dual completion

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1+ Bcfe reserve potential per well

Over 100 identified locations in SE Carthage Field

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Four new areas entered during 2005 with 100+ possible locations

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Three full time rigs working in the basin

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SE CARTHAGE

GROSS ACRES: 45,000

I.P. RATE - 1,300 MCF/DAY

POTENTIAL DRILLS: 100+

NICKLAUS PROSPECT

GROSS ACRES: 1,546

POTENTIAL DRILLS: 15+

JONES PROSPECT

GROSS ACRES: 8,800

POTENTIAL DRILLS: 50+

SOUTH ALTO

GROSS ACRES: 4,247

I.P RATE - 1000 MCF/DAY

POTENTIAL DRILLS: 30

HOGAN PROSPECT

GROSS ACRES: 960

POTENTIAL DRILLS: 6

PALMER PROSPECT

GROSS ACRES: 1,562

POTENTIAL DRILLS: 10

PROSPECTS

DISCOVERIES

TEXAS

East Texas Basin

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 Capital Expenditure    $1.9MM

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 Reserves        1.1 Bcfe

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 F&D Cost (per Mcf)     $1.73

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 LOE      $0.73 / Mcfe

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 I.P. Rate          1.3 MMcfe/d

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 Reserve Life    30+ years

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Gas Price (per Mcf)

Carthage Field – Dual Completed Well Economics

East Texas Basin

15

PetroQuest Energy

Bill Barrett C

Carrizo Oil & Gas
Denbury Resources
EOG Resources
Gasco Energy
Goodrich Petroleum
Quicksilver Resources
Southwestern Energy
The Exploration Co.
Ultra Petroleum

orp

Average, excluding PetroQuest

Average, excluding high / low & Petroquest

2005A CF

Multiple ⁽¹⁾

5.3

9.1

14.9
7.1
7.4
220.7

12.9
22.0
17.8
29.35

20.6

24.0

14.2

(1) Company figures and Bloomberg L.P.

(2) Consensus estimates Bloomberg L.P.; company stock prices as of 06/30/2006

2006E CF

Multiple ⁽²⁾

4.5

5.9

12.6
9.2
6.4
21.7

8.9
13.1
12.1
11.5

19.2

12.1

11.6

2007E CF

Multiple ⁽²⁾

3.6

5.2

9.7
7.9
5.9
10.6

5.4
10.4
9.0
7.2

14.5

9.1

10.1

Resource Players

Cash Flow Comparison 

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Oakbourne

(P&A)

Cayenne (Producing)

The Farm (P&A)

Lafayette

Pelican Point

(Producing)

Grey Plantation

(Drilling)

English Turn

(Producing)

Atchafalaya

2006 South Louisiana Drilling Program

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2006 South Louisiana Drilling Program

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Pacific Grove

(P&A)

Lafayette

Grayhawk

(Completing)

Denali

(P&A)

WC Drilling

Program

(Completing)

SS 72 Drilling

Program

(Completing)

2006 Gulf of Mexico Drilling Program

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2006 Gulf of Mexico Drilling Program

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Consistent Approach Generates

Continued Growth 

Economic reserve additions and production growth

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Effective cost control

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Balanced portfolio of projects

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Use acquisitions to augment future drilling program

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Resource Play

Inventory Wedge

East Texas

Arkoma

Gulf Coast

Bcfe

Growth in Reserves

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in millions

Cash Flow Growth

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$ / Mcf

Gross Margin

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Onshore

Offshore

100% Gulf Coast

32% East

Texas

20% Arkoma

23% South

Louisiana

25% GOM

$165 - 175 million

Drilled 128 - 138 Wells

$64 million

Drilled 10 Wells

2002

2006

Capital Investment Program –

Our Change is Complete

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Drilling Activity Leads to Production Growth

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Gulf Coast

East Texas

Arkoma

Bcfe

We’re Forecasting Production Growth

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Framework for Future Growth

PetroQuest has the inventory and capability to continue its steady production and reserve growth in all three basins

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Resource plays forecasted to grow production and reserves in our long-lived areas

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Continue to improve operating efficiencies in our long-lived areas through continuous drilling

15 high quality exploration prospects in inventory

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Balance sheet supports reserve base expansion

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Management owns largest portion of company among peer group

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