document: PetroQuest Energy has announced the sale of its Gulf of Mexico properties on January 31, 2018, but effective as of December 1, 2017. As a result of the sale, the Company has eliminated an approximate $35.4 million undiscounted abandonment liability from its long-term obligations.Â  The Company received no proceeds from the sale of these properties and is required to contribute $3.75 million towards future abandonment costs.Â  In connection with the sale, the Company expects to receive a cash refund of approx. $10.3 million related to a depositary account that served to collateralize a portion of the Company's offshore bonds. All of the Company's production is now derived from assets located onshore Louisiana and Texas.Â  Â Â Â Â Â  During the fourth quarter of 2017, the Sold Assets produced approx. 26.1 MMcfe/d (21% oil, 75% gas, 4% NGL).Â  Production from the Sold Assets has declined over the last 60 days as a result of natural declines.Â  The Company estimates net daily production for January 2018 to be approx. 13.8 MMcfe/d (24% oil, 71% gas and 5% NGL), or 47% below the fourth quarter 2017 rate. Â Â  As of December 31, 2017, the Company's estimated proved reserves attributable to the Sold Assets totaled approx. 11 Bcfe (100% proved developed) with estimated pre-tax discounted future net cash flows (PV-10) of approx. ($2.4) million, using SEC pricing ($2.98/Mcf for natural gas and $51.34/Bbl for oil). The following tables set forth information about the Company's estimated proved reserves, including proforma for the divestiture of the Sold Assets: Including the Sold Assets, the Company estimates that its 2017 production was approx. 27.6 Bcfe, or 75.6 MMcfe per day. Estimated fourth quarter 2017 production, including the Sold Assets, totaled approx. 8.6 Bcfe, or 93.7 MMcfe per day, compared to guidance of 91-95 MMcfe/d.Â  Estimated production for 2017 was 17% higher than 2016 and estimated fourth quarter 2017 production was 87% higher than the year-ago quarter.Â  Based upon estimated 2017 production, the Company estimates that it achieved a 247% reserve replacement ratio during 2017 and expects that its all-in finding and development costs during 2017 to be approx. $0.70/Mcfe. The Company expects to provide first quarter 2018 guidance metrics and 2018 capital expenditure guidance and plans in connection with its 2017 year-end earnings release in early March 2018. Management's Comment 'After completing the sale of our Gulf of Mexico properties, we have eliminated a considerable long-term abandonment liability and have substantially reduced our exposure to future regulatory, environmental, surety and weather risks inherent in offshore operations.Â  In addition, the sale will increase our net liquidity by $6.5 million and allow us to focus our attention on developing our onshore assets in East Texas and in the Louisiana Austin Chalk trend,' said Charles T. Goodson, Chairman, Chief Executive Officer and President. 'While our production and reserve profiles will experience near-term reductions after this divestiture, we believe that this transaction will ultimately drive value creation.' Original article link Source: PetroQuest Energy 
summary: Gulf of Mexico, not found