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):

March 7, 2007

PETROQUEST ENERGY, INC.

(Exact name of registrant as specified in its charter)

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

Commission File Number: 0-019020

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))

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Item 7.01 Regulation FD Disclosure

Representatives of PetroQuest Energy, Inc. (the “Company”) are scheduled to make a presentation at the Raymond James 28^th Annual Institutional Investors Conference in Orlando, Florida on March 7, 2007. We are filing herewith a copy of this presentation that will be used at this conference as Exhibit 99.1.

In accordance with General Instructions B.2 and B.6 of Form 8-K, the foregoing information, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d). Exhibits:

99.1 March 2007 Presentation

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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: March 7, 2007	By:/s/ Daniel G. Fournerat
	Daniel G. Fournerat
	Executive Vice President, General Counsel and Secretary

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EX-99.1

Raymond James 28^thAnnual

Institutional Investors Conference

Orlando, Florida

March 7, 2007

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

2

Corporate Characteristics

n

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

n

8-year historical drilling success – 89%

n

8-year F&D and Reserve Replacement – $2.87/Mcfe and 220% 

n

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

n

Top quartile operator among peers

n

Highly experienced team with proven track record for generating shareholder returns 

3

Merger $0.81 

$5.32

$791

$163

$12.74

Adding Up Our Milestones

4

Eight Years of Growth

n

Reserves       33% CAGR

n

Production      41% CAGR

n

Cash Flow      125% CAGR

n

Shareholders’ Equity     34% CAGR

n

Stock price      41% CAGR

5

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 - our goal is to have 75% of our reserves in long-lived basins

52% Reserves

48% 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

n

Three separate basins - all core to PQ 

Gulf Coast

Net Unrisked Inventory (1) 

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

(2) Based on guidance for 2007(79 – 85 MMcfe/day)

45.4

24.5

23.8

40.8

134.5

305

477

127

283

1,192

305

533

29

22

889

Our Portfolio

n

Three separate basins - all poised for growth 

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Propelling our Future Growth

n

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

n

52% of our reserves are in long-lived basins

n

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

n

29% of our daily production is from these areas (average of 2006)

n

Concentration in three core areas with significant control of operations

n

Large acreage positions with expansion potential

n

Facilities ownership and control

n

Value adding potential through technology improvements in long-lived areas

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Oklahoma

Arkansas

Hartshorne

Coal

Arkoma

Basin

Woodford Shale Trend

n

Approximately 35,000 net acres in the Hartshorne Coal

n

Approximately 21,000 net acres in the Woodford Shale

n

One operated rig working in the Woodford Shale; continuous non-operated activity in the Woodford Shale

n

Operated and non-operated Hartshorne Coal activity throughout the year

n

Operate 152 miles of gathering system

n

Current production of ~10,000 Mcf/day; increasing monthly

Arkoma Basin

10

Arkoma Basin

Woodford Shale

PQ acreage

LEGEND

Caney Woodford

Shale Trend

Fayetteville

Shale Trend

Barnett Shale Trend

Texas

Oklahoma

Arkansas

Woodford Shale

n

Approximately 21,000 net acres

n

Projected 80 acre spacing – 250+ locations

n

Projected 40 acre spacing – 500+ locations

n

Current economics per horizontal well: 2.5 to 3.5 Bcf; $4.0MM to $5.0 completed well cost; 2.5 to 4.0 MMcf/day I.P. rate

n

PQ currently drilling vertical and horizontal wells and shooting seismic

Arkoma Basin – Emerging Resource Play

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Woodford Shale Well Economics

Gas Price (per Mcf)

Hartshore Coal2,500’

Mayes ShaleFrac Barrier

Woodford Shale7,000’

Sylvan ShaleFrac Barrier

Cromwell Sandstone5,400’

Caney Shale6,400’

Arkoma Basin

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Ticker	Woodford Acres	Acres/EV (1)
PQ	21,000	27.4
NFX	145,000	22.7
SM	39,000	17.7
CHK	100,000	4.4
DVN	50,000	1.4

(1) Represents number of acres per million dollars of enterprise value. Enterprise values as of February 21, 2007

 

Pontotac

Coal

Pittsburg

Macintosh

Haskell

Latimer

NFX

CHK

PQ

SM

DVN

Oklahoma

Tulsa

Oklahoma City

Hughes

Woodford Shale - Upside Leverage

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East Texas Basin

n

62,000 gross acres; anchored by SE Carthage Field

n

11 MMcfe/day net production (average of 4th quarter)

n

10,500 Mcfe/day net production in SE Carthage Field

n

500 Mcfe/day net production in other areas

n

Travis Peak and Cotton Valley Formations

n

$1.9 MM average well cost – dual completion

n

1+ Bcfe reserve potential per well

n

Over 100 identified locations in SE Carthage Field

n

Four new areas entered during 2005 with 100+ possible locations

n

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 - 1,000 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

15

n

 Capital Expenditure   $1.9MM

n

 Reserves                 1.1 Bcfe

n

 F&D Cost (per Mcf)   $1.73

n

 LOE                         $0.73 / Mcfe

n

 I.P. Rate                   1.3 MMcfe/d

n

 Reserve Life             30+ years

Gas Price (per Mcf)

Carthage Field – Dual Completed Well Economics

East Texas Basin

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PetroQuest Energy

Bill Barrett Corp

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

Average, excluding PetroQuest

Average, excluding high / low & Petroquest

2006E CF

Multiple⁽¹⁾

4.7

5.1

14.2
7.7
5.9
20.4

15.6
13.8
14.9
12.8

17.7

12.8

11.5

⁽¹⁾ Consensus estimates Bloomberg L.P.; company stock prices as of 12/31/2006

2007E CF

Multiple⁽¹⁾

4.1

4.5

9.3
7.6
5.6
14.4

8.9
10.8
10.6
8.2

14.0

9.4

8.2

2008E CF

Multiple⁽¹⁾

3.3

3.8

7.8
5.9
4.8
9.1

4.8
9.5
8.0
8.2

10.6

7.25

6.6

Resource Players

Cash Flow Comparison 

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Lafayette

Atchafalaya (Drilling)

Kosati Pines

WC Drilling Program

SS 72 Drilling Program

Fricasse

Pelican Point (Drilling)

Bandon

Dunes

Pacific Dunes

Ballyliffin Brittas Bay

2007 Gulf Coast Drilling Program

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2007 Gulf Coast Drilling Program

19

Consistent Approach Generates

 Continued Growth 

n

Economic reserve additions and production growth

n

Effective cost control

n

Balanced portfolio of projects

n

Use acquisitions to augment future drilling program

20

East Texas

Arkoma

Gulf Coast

Bcfe

2007

2008

Growth in Reserves

21

in millions

Cash Flow Growth

22

$ / Mcf

Gross Margin

23

Onshore

Offshore

100% Gulf Coast

40% East

Texas

21% Arkoma

15% South

Louisiana

24% GOM

$160 - 175 million

Drill 70 - 80 Wells

$64 million

Drilled 10 Wells

2002

2007

Capital Investment Program –

Our Change is Complete

24

Drilling Activity Leads to Production Growth

25

Gulf Coast

East Texas

Arkoma

Bcfe

We’re Forecasting Production Growth

26

Hedging Positions Mitigate Risks

n

Target of hedging 40%-50% of annual production – approximately 34% of 2007 production is currently hedged (based on mid-point of production guidance)

n

$82 million of revenue (49% of 2007 capital expenditures) has been locked in through hedged production

n

PetroQuest’s open oil and gas hedging positions (costless collars) for 2007:

Natural Gas	Hedged Volumes (Mmbtu)	Average Price	Crude Oil	Hedged Volumes (Bbls)	Average Price
Q1 ’07	22,500	$8.02 - $9.71	Q1 ’07	300	$65 - $79.10
Q2 ‘07	27,500	$7.86 - $9.52	Q2 ’07	300	$65 - $79.10
Q3 ’07	27,500	$7.86 - $9.52	Q3 ’07	200	$65 - $77.70
Q4 ’07	27,500	$7.86 - $9.52	Q4 ’07	200	$65 - $77.70

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Framework for Future Growth

n

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

n

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

n

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

n

15 high quality exploration prospects in inventory

n

Balance sheet supports reserve base expansion

Management owns largest portion of company among peer group

n

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Raymond James 28^th Annual

Institutional Investors Conference
Orlando, Florida
March 7, 2007

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