Midstates Petroleum Company, Inc. has executed an Exploration Agreement with PetroQuest Energy, Inc. under which PetroQuest acquired 50% of Midstates' lease ownership rights in the Fleetwood area of Louisiana and a license to the associated Fleetwood 3-D seismic survey for total consideration of $24 million.

The consideration to be paid by PetroQuest consists of $10 million in cash ($3 million now and $7 million in January 2015) and a credit of $14 million for Midstates' share of future exploration activities including drilling, completion and lease acquisition costs. PetroQuest will be the operator and current plans are to drill two exploration wells during the second half of 2014 with additional exploration drilling in 2015.

Tags: Midstates Petroleum Company, PetroQuest Energy