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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (42143)	4/6/2011 12:27:40 PM
From: E_K_S	Read Replies (1) of 78763

Hi Paul - PetroQuest Energy Inc. (PQ) came up on my search into Niobrara leases under development. From the Niobrara Shale (A blog dedicated to investment opportunities in the Niobrara Shale) niobrarashale.typepad.com 02/03/2011 PetroQuest Energy Updates Niobrara Shale Operations PetroQuest Energy (PQ) issued a year end operations update on its properties prospective for the Niobrara Shale. The company has been involved with the play on a non operated basis. PetroQuest Energy reported that the Nevis #2 well has produced 20,000 barrels of oil since coming onto production sixty days ago. The company has a 20% net revenue interest in the Nevis #2 well. The well was put on artificial lift in January after experiencing some down time and is now producing 360 barrels of oil per day. PetroQuest Energy said that the Hester #3 well, the company’s third non operated well into the Niobrara Shale, will be spud during the first quarter of 2011. The company has allocated between $11 million and $12 million to participate in 12 to 15 gross Niobrara Shale wells in 2011. Stock has run up but could become a value Buy on any significant correction. I like their very strong balance sheet, the cash generated from operations (enough to fund future E&P), and their success in adding to their reserves (see pg-6- of presentation). Here is their most recent presentation March 2011: Pg-22 Ranks Comparative Valuations to Peers. Lots of names here you will recognize petroquest.com Their 2011 focus is on developing their Niobrara Oil (10% growth). Their a gassy company (79%) but this cash flow pays for their oil development. ------------------------------------------------------------------------ Didn't see this one mentioned in any of your posts. There is some interest in the company at Big Dog's Boom Boom thread. They are in at $7.50-$8.50/share which for me would also provide a reasonable value buy. finance.yahoo.com They sold interests in their NG gathering business in 2008 ($44M), sold equity in 2009($38M) and received $60M JV payment in 2010 for a 50% interest in their Woodford project. As a result, this is one of a very few companies where their annual net income < 4X Debt. EKS

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