PetroQuest receives another notice from NYSE

PetroQuest Energy Inc. (NYSE: PQ) has received notice from NYSE Regulation Inc. that it is not in compliance with the continued listing standards set forth in Section 802.01B of the Listed Company Manual of the New York Stock Exchange Inc. (NYSE) because the company's average global market capitalization fell below $50 million over a trailing consecutive 30-trading-day period and its last reported stockholders' equity was less than $50 million. 

In December 2015, PetroQuest received notice from NYSE Regulation Inc. that it was not in compliance with the continued listing standards set forth in Section 802.01C of the Listed Company Manual of the New York Stock Exchange because the average closing price of the company's common stock had fallen below $1 per share for a period of over 30 consecutive trading days.

For this latest notice, as required by the NYSE, PetroQuest will notify the NYSE within 10 business days of its intent to cure the deficiency and return to compliance with the NYSE continued listing requirements.

In accordance with NYSE procedures, the company has 45 days from the receipt of the notice to submit a business plan to the NYSE demonstrating how it intends, within the next 18 months, to regain compliance with the continued listing standards set forth in Section 802.01B of the Listed Company Manual. PetroQuest intends to develop and submit such a business plan within the required time frame and will continue to work with the NYSE to attempt to comply with all continued listing standards. 

Assuming that the NYSE accepts the plan, PetroQuest will be subject to quarterly monitoring for compliance with the business plan and its common stock will continue to trade on the NYSE during the 18-month period, subject to its compliance with other NYSE continued listing requirements. The NYSE may choose to shorten the usual compliance period if prior to the end of the 18 months the company's global market capitalization exceeds $50 million for two consecutive quarters.

If the company's common stock ultimately were to be delisted for any reason, it could negatively impact the company by reducing the liquidity and market price of its common stock; reducing the number of investors willing to hold or acquire its common stock, which could negatively impact the company's ability to raise equity financing; limiting its ability to use a registration statement to offer and sell freely tradable securities, thereby preventing the company from accessing the public capital markets; and impairing the company's ability to provide equity incentives to its employees.

PetroQuest Energy is an independent energy company engaged in the exploration, development, acquisition, and production of oil and natural gas reserves in Texas, Oklahoma, Louisiana, and the shallow waters of the Gulf of Mexico.  

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