The following table sets forth certain information with respect to the oil and gas operations of the Company for the three-month periods ended March 31, 2009 and 2008:

                                              Three Months Ended
                                                   March 31,
                                             2009             2008
               Production:
               Oil (Bbls)                     174,811          193,776
               Gas (Mcf)                    9,047,214        6,727,828
               Total Production (Mcfe)     10,096,080        7,890,484

               Sales:
               Total oil sales           $  9,279,283     $ 18,229,840
               Total gas sales             49,954,858       56,589,465
               Total oil and gas sales     59,234,141       74,819,305

               Average sales prices:
               Oil (per Bbl)             $      53.08     $      94.08
               Gas (per Mcf)                     5.52             8.41
               Per Mcfe                          5.87             9.48

The above sales and average sales prices include increases (reductions) related to gas hedges of $13,978,000 and $174,000 and oil hedges of $2,045,000 and ($816,000) for the three months ended March 31, 2009 and 2008, respectively. The following initiates guidance for the second quarter of 2009:

                                                              Guidance for
     Description                                            2nd Quarter 2009

     Production volumes (MMcfe/d)                                 90 - 96

     Percent gas                                                    90%

     Expenses:
     Lease operating expenses (per Mcfe)                   $   1.30 - $1.40
     Production taxes (per Mcfe)                           $    0.15 - $.20
     Depreciation, depletion and amortization (per Mcfe)   $   2.50 - $2.60
     General and administrative (in millions)              $    4.5 - $5.0
     Interest expense (in millions)                        $    3.3 - $3.8

The following updates guidance for the full year of 2009:

                                                             Guidance for
      Description                                           Full Year 2009

      Production volumes (MMcfe/d)                               90 - 100

      Percent gas                                                  90%

      Expenses:
      Lease operating expenses (per Mcfe)                   $  1.25 - $1.35
      Production taxes (per Mcfe)                           $  0.20 - $0.25
      Depreciation, depletion and amortization (per Mcfe)   $  2.70 - $2.80
      General and administrative (in millions)              $    19 - $21
      Interest expense (in millions)                        $    15 - $16

      2009 Capital Expenditures (in millions)               $    60 - $90

Liquidity Update
The Company continued to execute its current year plan of enhancing liquidity by increasing its working capital balance to approximately $83 million as of March 31, 2009. This was achieved by generating discretionary cash flow of $38 million, against only $10 million of capital expenditures, and by the increase in the Company's hedge asset value at March 31, 2009. Operations Update
The Company participated in 21 gross (0.9 net) non-operated wells in the Fayetteville shale during the first quarter of 2009 and currently has three non-operated rigs working in this area. In addition, the Company participated in three gross (0.2 net) non-operated Woodford wells and has two operated Woodford wells waiting on completion.
During the second quarter of 2009, the Company sold its East Texas Palmer and Hogan prospects to a private company for approximately $4.3 million, subject to post-closing adjustments. These properties represented approximately 1.3 MMcfe per day of production during the first quarter of 2009. Management Statement
"Primarily due to our Company record production, we continued to improve our liquidity position during the first quarter as evidenced by the fact that our working capital surplus now stands at approximately $83 million," said Charles T. Goodson, Chairman, Chief Executive Officer and President. "We are focused on strengthening our balance sheet through this economic downturn and plan to fund our drilling expenditures with cash flow from operations as well as consider other liquidity building options."
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Arkoma Basin, East Texas, South Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest trades on the New York Stock Exchange under the ticker PQ.

Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our ability to find oil and natural gas reserves that are economically recoverable, the volatility of oil and natural gas prices and the significant price decline since June 30, 2008, the deteriorating economic conditions in the United States and globally, the decline in the values of our properties that have resulted in and may in the future result in additional ceiling test write-downs, our ability to replace reserves and sustain production, our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions or dispositions and in projecting future rates of production or future reserves, the timing of development expenditures and drilling of wells, hurricanes and other natural disasters, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements.