Lafayette, LA-based PetroQuest Energy Inc. announced that it has hedged 7,000 Mcf/d of its natural gas production for the calendar year 2003. These natural gas hedges are in the form of swaps at an average price of $4.015/MMbtu. The new hedged gas brings PetroQuest’s hedged total to 2.555 Bcf. “Hedging at these price levels locks in favorable returns on the volumes hedged in addition to providing the company with more predictable cash flow,” said Charles Goodson, CEO of PetroQuest. “We continue to evaluate the market for additional opportunities to hedge not only incremental volumes of natural gas, but also crude oil.” The company also took the chance to update its current production operations. PetroQuest recently began drilling two wells, the Berry Lake #2, offsetting the recent Berry Lake discovery, and the initial test well at the Redfish Prospect. Both wells are anticipated to be logged before year-end. The independent energy company is engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Gulf Coast Basin, both onshore and in shallow waters offshore.

As part of its previously announced plan to divest non-core mature properties, Mission Resources Corp. said Thursday that it has entered into agreements to sell some of its properties through an auction and a negotiated transaction. The sales are expected to close in December, subject to final due diligence, and will result in approximately $15.4 million of proceeds. The company divested certain operated and non-operated interests in the Giddings field and all of its interests in the Eunice field in southeast New Mexico. Once the sale is final, Mission will no longer have properties located in New Mexico. The company also sold the remainder of its operated interests in the Permian Basin; however, the Permian Basin remains a core area for Mission. The company estimated that the properties sold represent approximately 950 Boe/d of production and reserves of 2.1 million boe. Because of its sales, the bank facility borrowing base has been reduced by $10 million to $40 million. “We are extremely pleased with the results of the sale,” said Robert L. Cavnar, CEO of Mission. “These transactions help to further our goal of consolidating operations into core areas. The proceeds will be used to eliminate the $3 million outstanding debt on the credit facility, acquire select properties and enhance Mission’s 2003 capital program.” The Houston-based independent exploration and production company acquires, develops and produces crude oil and natural gas in the Permian Basin of West Texas, along the Texas and Louisiana Gulf Coast and in the Gulf of Mexico.

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