PetroQuest Energy said it purchased about 8.8 Bcf of proved natural gas reserves in the Arkoma Basin of Oklahoma from an unnamed private company for $13.5 million. The company expects to allocate $2 million of the purchase price to unevaluated acreage. The reserves are 47% proved developed producing. Development costs for the proved undeveloped reserves are estimated at $0.74/Mcf. The acquisition will initially add 1.5 MMcf/d of production. “This acquisition expands our existing operations in the Arkoma Basin, adding approximately 6,000 net acres adjacent to our current acreage position and approximately 28 miles of pipeline and infrastructure in Pittsburg County, OK,” said CEP Charles T. Goodson. “This brings our total ownership to over 12,000 net acres and 36 miles of pipeline in the area.”

Looking to clear up confusion in the financial markets, Falcon Gas Storage Co. Inc. (FGSCI) President John M. Hopper said that his Houston-based company is in no way affiliated with Houston-based Falcon Natural Gas Corp. (FNGC), “a start-up company traded on the over-the-counter bulletin board public stock exchange. “FNGC’s most recent filing with the Securities and Exchange Commission says: ‘Falcon Natural Gas Corp. (‘the Company’) was incorporated in Nevada as Countryside Review Inc. (‘Countryside’) on Dec. 7, 2001. The Company’s business plan was to develop an on-line equestrian lifestyle magazine for the amateur rider and horse owner…which the company discontinued… As a result of the acquisition of Falcon Natural Gas Corp…and the change in business focus, the company changed its name…and is now engaged in natural gas exploration activities in the state of Texas. [It] has not realized any revenues from its planned operations and is in its exploration stage,'” Hopper noted. He added that FGSCI has contacted FNGC on several occasions and requested that FNGC refrain from using the names ‘Falcon’ or ‘Falcon Gas’ in its press releases and in its web address because of the confusion it has caused in the marketplace. “Hopefully FNGC will do so, as this ongoing confusion does not serve the interests of either company,” he said.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.