PetroQuest Energy, Inc. announced that in September 2014, the Company completed the sale of its Eagle Ford assets for net proceeds of approximately $9.7 million. The Company estimates that operating cash flow generated from its Eagle Ford assets during the first six months of 2014 totaled approximately $2.0 million on average daily production of approximately 195 barrels of oil equivalent per day. As of June 30, 2014, the Company estimated that proved reserves associated with the Eagle Ford assets totaled approximately 2.1 Bcfe with an estimated discounted net cash flow (PV-10) of $6.6 million.
Borrowing Base Update
The Company's bank group has completed its semi-annual re-determination of its borrowing base under its credit facility. As a result, the Company's $200 million borrowing base has been increased to $220 million and the commitment level has been increased from $150 million to $170 million. The next re-determination of the borrowing base is scheduled to occur before March 31, 2015.
Non-GAAP Financial Measure
PV-10 is the estimated future cash flow from estimated proved reserves discounted at an annual rate of 10% before giving effect to income taxes. Standardized measure is the after-tax estimated future cash flows from estimated proved reserves discounted at an annual rate of 10%, determined in accordance with GAAP. Management believes PV-10 is useful to investors as it is based on prices, costs and discount factors which are consistent from company to company, while the standardized measure is dependent on the unique tax situation of each individual company. As a result, the Company believes that investors can use PV-10 as a basis for comparison of the relative size and value of reserves to other companies in different basins. The Company also understands that securities analysts and rating agencies use PV-10 in similar ways. PV-10, as presented herein, cannot be reconciled to the standardized measure of discounted future cash flows because final income tax information for 2014 is not yet available.