PetroQuest Energy, Inc. ended 2013 with a Company record 302 Bcfe of estimated proved oil and gas reserves having a pre-tax discounted value ("PV-10") including hedges of approximately $479 million. Estimated proved reserves and PV-10 at December 31, 2013 were 33% and 99% higher, respectively, than year-end 2012. The Company's estimated proved reserves at December 31, 2013 were comprised of 84% natural gas, 6% oil and 10% natural gas liquids. In addition, approximately 81% of the reserves were located in long-lived basins and approximately 67% were proved developed. The Company estimates that it replaced approximately 295% of its production in 2013.
The Company estimates that its 2013 production was approximately 38.0 Bcfe, or 104.2 MMcfe per day, including fourth quarter 2013 production of 10.2 Bcfe, or approximately 111 MMcfe per day. The Company's 2013 production was approximately 12% higher than 2012 and was comprised of 77% natural gas, 11% oil, and 12% natural gas liquids. Fourth quarter 2013 production was 15% higher than the comparable 2012 period and was comprised of 75% natural gas, 13% oil and 12% natural gas liquids. During the fourth quarter of 2013, the Company produced 2,372 barrels of oil per day and 2,158 barrels of natural gas liquids per day, a 55% and 7% increase, respectively, from the fourth quarter of 2012.
The Company projects its 2014 production to average between 125 and 140 MMcfe per day with approximately 70%, 13% and 17% to be derived from natural gas, oil and natural gas liquids, respectively. In addition, the Company projects its first quarter 2014 production to average between 112 and 117 MMcfe per day with approximately 73%, 14% and 13% to be derived from natural gas, oil and natural gas liquids, respectively.
Capital Expenditures Guidance
The Company's capital budget for 2014 is expected to range between $140 million and $150 million including approximately $25 million of capitalized interest and overhead. The 2014 capital budget is expected to be fully funded out of internally generated cash flow.
In the Woodford, the Company has concluded drilling on its first pad in its recently acquired 30,000 acre liquids rich position in the West Relay field. This 5 well pad (average NRI - 38%) is currently being completed, as well as another standalone well, and all wells are expected to be online in approximately three weeks. In addition, the Company has commenced drilling on its second pad in the West Relay field and expects first production from these four wells (average NRI - 31%) to be established during early second quarter. The Company expects to drill approximately 50 gross Woodford wells during 2014.
In East Texas, the Company is currently drilling the lateral section of its PQ#10 (WI - 55%) horizontal Cotton Valley well. This well is part of a two well pad that is expected to be completed during the second quarter. The Company expects to drill six gross horizontal Cotton Valley wells in 2014.
In the Gulf Coast, the Company has re-entered its 2008 Pelican Point discovery well that previously produced 1.6 million barrels of oil and 18 Bcf of gas from the Rob L-0 sand. The Company plans to deepen the well an additional 700 feet to test the Rob L-1 and Rob L-2 objectives. The deepening operation is expected to take approximately four weeks and the Company holds a 55% working interest.
The Company is in the process of evaluating rig availability, reviewing permitting requirements and finalizing partner participation in the Thunder Bayou prospect. The Company currently expects to spud this high impact well during the second quarter of 2014. The Company's Sawgrass well (WI – 47%) has reached total depth and has been determined to be non-productive.
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