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                                                                    EXHIBIT 10.6

                                    GUARANTY

      THIS GUARANTY is made as of December 21, 2000, by PetroQuest Energy,
Inc., a Delaware corporation ("Guarantor"), in favor of EnCap Energy Capital
Fund III, L.P. ("Lender").

                                    RECITALS:

      1. PetroQuest Energy, Inc., a Louisiana corporation (the "Corporation"),
and PetroQuest Energy One, L.L.C., a Louisiana limited liability company (the
"LLC"; the Corporation and the LLC are collectively referred to herein as
"Borrower"), have executed in favor of Lender that certain promissory note of
even date herewith payable to the order of Lender in the principal amount of
$10,000,000 (such promissory note, as from time to time amended, and all
promissory notes given in substitution, renewal or extension therefor or
thereof, in whole or in part, being herein collectively called the "Note").

      2. The Note was executed pursuant to a Credit Agreement of even date
herewith (herein, as from time to time amended, supplemented or restated, called
the "Credit Agreement") by and between Borrower, Guarantor, and Lender, pursuant
to which Lender has agreed to advance funds to Borrower under the Note.

      3. It is a condition precedent to Lender's obligations to advance funds
pursuant to the Credit Agreement that Guarantor shall execute and deliver to
Lender a satisfactory guaranty of Borrower's obligations under the Note and the
Credit Agreement.

      4. Guarantor owns directly, or indirectly through one or more
subsidiaries, one hundred percent (100 %) of the outstanding shares of common
stock of the Corporation and one hundred percent (100%) of the outstanding
membership interests of the LLC.

      5. Borrower, Guarantor, and the other direct and indirect subsidiaries of
Guarantor are mutually dependent on each other in the conduct of their
respective businesses under a holding company structure, with the credit needed
from time to time by each often being provided by another or by means of
financing obtained by one such affiliate with the support of the others for
their mutual benefit and the ability of each to obtain such financing being
dependent on the successful operations of the others.

      6. The board of directors of Guarantor has determined that Guarantor's
execution, delivery and performance of this Guaranty may reasonably be expected
to benefit Guarantor, directly or indirectly, and are in the best interests of
Guarantor.

      NOW, THEREFORE, in consideration of the premises, of the benefits which
will inure to Guarantor from Lender's' advances of funds to Borrower under the
Credit Agreement, and of Ten Dollars and other good and valuable consideration,
the receipt and sufficiency of all of which are hereby acknowledged, and in
order to induce Lender to advance funds under the Credit Agreement, Guarantor
hereby agrees with Lender as follows:
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                                   AGREEMENTS:

      Section 1. Definitions. Reference is hereby made to the Credit Agreement
for all purposes. All terms used in this Guaranty which are defined in the
Credit Agreement and not otherwise defined herein shall have the same meanings
when used herein. All references herein to any Obligation Document, Loan
Document, or other document or instrument refer to the same as from time to time
amended, supplemented or restated. As used herein the following terms shall have
the following meanings:

      "Lender" means EnCap Energy Capital Fund III, L.P., and its successors
and assigns.

      "Obligations" means collectively all of the indebtedness, obligations, and
undertakings which are guaranteed by Guarantor and described in subsections (a)
and (b) of Section 2.

      "Obligation Documents" means this Guaranty, the Note, the Credit
Agreement, the Loan Documents, all other documents and instruments under, by
reason of which, or pursuant to which any or all of the Obligations are
evidenced, governed, secured, or otherwise dealt with, and all other documents,
instruments, agreements, certificates, legal opinions and other writings
heretofore or hereafter delivered in connection herewith or therewith.

      "Obligors" means Borrower, Guarantor and any other endorsers, guarantors
or obligors, primary or secondary, of any or all of the Obligations.

      "Security" means any rights, properties, or interests of Lender, under the
Obligation Documents or otherwise, which provide recourse or other benefits to
Lender in connection with the Obligations or the non-payment or non-performance
thereof, including collateral (whether real or personal, tangible or intangible)
in which Lender has rights under or pursuant to any Obligation Documents,
guaranties of the payment or performance of any Obligation, bonds, surety
agreements, keep-well agreements, letters of credit, rights of subrogation,
rights of offset, and rights pursuant to which other claims are subordinated to
the Obligations.

      Section 2.  Guaranty.

      (a) Guarantor hereby irrevocably, absolutely, and unconditionally
guarantees to Lender the prompt, complete, and full payment when due, and no
matter how the same shall become due, of:

            (i)  the Note, including all principal, all interest thereon and
      all other sums payable thereunder; and

            (ii) All other sums payable under the other Obligation Documents,
      whether for principal, interest, fees or otherwise; and

            (iii) Any and all other indebtedness or liabilities which Borrower
      may at any time owe to Lender, whether incurred heretofore or hereafter or
      concurrently herewith,

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      voluntarily or involuntarily, whether owed alone or with others, whether
      fixed, contingent, absolute, inchoate, liquidated or unliquidated, whether
      such indebtedness or liability arises by notes, discounts, overdrafts,
      open account indebtedness or in any other manner whatsoever, and including
      interest, attorneys' fees and collection costs as may be provided by law
      or in any instrument or agreement evidencing any such indebtedness or
      liability.

Without limiting the generality of the foregoing, Guarantor's liability
hereunder shall extend to and include all post-petition interest, expenses, and
other duties and liabilities of Borrower described above in this subsection (a),
or below in the following subsection (b), which would be owed by Borrower but
for the fact that they are unenforceable or not allowable due to the existence
of a bankruptcy, reorganization, or similar proceeding involving Borrower.

      (b) Guarantor hereby irrevocably, absolutely, and unconditionally
guarantees to Lender the prompt, complete and full performance, when due, and no
matter how the same shall become due, of all obligations and undertakings of
Borrower to Lender under, by reason of, or pursuant to any of the Obligation
Documents.

      (c) If Borrower shall for any reason fail to pay any Obligation, as and
when such Obligation shall become due and payable, whether at its stated
maturity, as a result of the exercise of any power to accelerate, or otherwise,
Guarantor will, upon demand by Lender, pay such Obligation in full to Lender. If
Borrower shall for any reason fail to perform promptly any Obligation, Guarantor
will, upon demand by Lender, cause such Obligation to be performed or, if
specified by Lender, provide sufficient funds, in such amount and manner as
Lender shall in good faith determine, for the prompt, full and faithful
performance of such Obligation by Lender or such other Person as Lender shall
designate.

      (d) If either Borrower or Guarantor fails to pay or perform any Obligation
as described in the immediately preceding subsections (a), (b), or (c) Guarantor
will incur the additional obligation to pay to Lender, and Guarantor will
forthwith upon demand by Lender pay to Lender, the amount of any and all
expenses, including fees and disbursements of Lender's counsel and of any
experts or agents retained by Lender, which Lender may incur as a result of such
failure.

      (e) As between Guarantor and Lender, this Guaranty shall be considered a
primary and liquidated liability of Guarantor. Guarantor's obligations and
liability under this Guaranty shall be on a "solidary" or "joint and several"
basis along with Borrower to the same degree and extent as if Guarantor had been
and/or will be a co-borrower, co-principal obligor and/or co-maker of the
Obligations with Borrower. In the event that there is more than one Guarantor
under this Guarantor, or in the event that there are other guarantors, endorsers
or sureties of all or any portion of the Obligations, Guarantor's obligations
and liability hereunder shall further be on a "solidary" or "joint and several"
basis along with such other guarantors, endorsers and/or sureties.

      Section 3.  Unconditional Guaranty.

      (a) No action which Lender may take or omit to take in connection with any
of the Obligation Documents, any of the Obligations (or any other indebtedness
owing by Borrower to

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Lender), or any Security, and no course of dealing of Lender with any Obligor or
any other Person, shall release or diminish Guarantor's obligations,
liabilities, agreements or duties hereunder, affect this Guaranty in any way, or
afford Guarantor any recourse against Lender, regardless of whether any such
action or inaction may increase any risks to or liabilities of Lender or any
Obligor or increase any risk to or diminish any safeguard of any Security.
Without limiting the foregoing, Guarantor hereby expressly agrees that Lender
may, from time to time, without notice to or the consent of Guarantor, do any or
all of the following:

            (i) Amend, change or modify, in whole or in part, any one or more of
      the Obligation Documents and give or refuse to give any waivers or other
      indulgences with respect thereto.

            (ii) Neglect, delay, fail, or refuse to take or prosecute any action
      for the collection or enforcement of any of the Obligations, to foreclose
      or take or prosecute any action in connection with any Security or
      Obligation Document, to bring suit against any Obligor or any other
      Person, or to take any other action concerning the Obligations or the
      Obligation Documents.

            (iii) Accelerate, change, rearrange, extend, or renew the time,
      rate, terms, or manner for payment or performance of any one or more of
      the Obligations (whether for principal, interest, fees, expenses,
      indemnifications, affirmative or negative covenants, or otherwise).

            (iv) Compromise or settle any unpaid or unperformed Obligation or
      any other obligation or amount due or owing, or claimed to be due or
      owing, under any one or more of the Obligation Documents.

            (v) Take, exchange, amend, eliminate, surrender, release, or
      subordinate any or all Security for any or all of the Obligations, accept
      additional or substituted Security therefor, and perfect or fail to
      perfect Lender's rights in any or all Security.

            (vi)  Discharge, release, substitute or add Obligors.

            (vii) Apply all monies received from Obligors or others, or from any
      Security for any of the Obligations, as Lender may determine to be in
      their best interest, without in any way being required to marshall
      Security or assets or to apply all or any part of such monies upon any
      particular Obligations.

      (b) No action or inaction of any Obligor or any other Person, and no
change of law or circumstances, shall release or diminish Guarantor's
obligations, liabilities, agreements, or duties hereunder, affect this Guaranty
in any way, or afford Guarantor any recourse against Lender. Without limiting
the foregoing, the obligations, liabilities, agreements, and duties of Guarantor
under this Guaranty shall not be released, diminished, impaired, reduced, or
affected by the occurrence of any or all of the following from time to time,
even if occurring without notice to or without the consent of Guarantor:

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            (i) Any voluntary or involuntary liquidation, dissolution, sale of
      all or substantially all assets, marshalling of assets or liabilities,
      receivership, conservatorship, assignment for the benefit of creditors,
      insolvency, bankruptcy, reorganization, arrangement, or composition of any
      Obligor or any other proceedings involving any Obligor or any of the
      assets of any Obligor under laws for the protection of debtors, or any
      discharge, impairment, modification, release, or limitation of the
      liability of, or stay of actions or lien enforcement proceedings against,
      any Obligor, any properties of any Obligor, or the estate in bankruptcy of
      any Obligor in the course of or resulting from any such proceedings.

            (ii) The failure by Lender to file or enforce a claim in any
      proceeding described in the immediately preceding subsection (i) or to
      take any other action in any proceeding to which any Obligor is a party.

            (iii) The release by operation of law of any Obligor from any of the
      Obligations or any other obligations to Lender.

            (iv) The invalidity, deficiency, illegality, or unenforceability of
      any of the Obligations or the Obligation Documents, in whole or in part,
      any bar by any statute of limitations or other law of recovery on any of
      the Obligations, or any defense or excuse for failure to perform on
      account of force majeure, act of God, casualty, impossibility,
      impracticability, or other defense or excuse whatsoever.

            (v) The failure of any Obligor or any other Person to sign any
      guaranty or other instrument or agreement within the contemplation of any
      Obligor or Lender.

            (vi) The fact that Guarantor may have incurred directly part of the
      Obligations or is otherwise primarily liable therefor.

            (vii) Without limiting any of the foregoing, any fact or event
      (whether or not similar to any of the foregoing) which in the absence of
      this provision would or might constitute or afford a legal or equitable
      discharge or release of or defense to a guarantor or surety other than the
      actual payment and performance by Guarantor under this Guaranty.

      (c) Lender may invoke the benefits of this Guaranty before pursuing any
remedies against any Obligor or any other Person and before proceeding against
any Security now or hereafter existing for the payment or performance of any of
the Obligations. Lender may maintain an action against Guarantor on this
Guaranty without joining any other Obligor therein and without bringing a
separate action against any other Obligor.

      (d) If any payment to Lender by any Obligor is held to constitute a
preference or a voidable transfer under applicable state or federal laws, or if
for any other reason Lender is required to refund such payment to the payor
thereof or to pay the amount thereof to any other Person, such payment to Lender
shall not constitute a release of Guarantor from any liability hereunder, and
Guarantor agrees to pay such amount to Lender on demand and agrees and
acknowledges that this Guaranty shall continue to be effective or shall be
reinstated, as the case

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may be, to the extent of any such payment or payments. Any transfer by
subrogation which is made as contemplated in Section 6 prior to any such payment
or payments shall (regardless of the terms of such transfer) be automatically
voided upon the making of any such payment or payments, and all rights so
transferred shall thereupon revert to and be vested in Lender.

      (e) This is a continuing guaranty and shall apply to and cover all
Obligations and renewals and extensions thereof and substitutions therefor from
time to time.

      Section 4. Waiver. Guarantor hereby waives, with respect to the
Obligations, this Guaranty, and the other Obligation Documents:

      (a) notice of the incurrence of any Obligation by Borrower, and notice of
any kind concerning the assets, liabilities, financial condition,
creditworthiness, businesses, prospects, or other affairs of Borrower (it being
understood and agreed that: (i) Guarantor shall take full responsibility for
informing itself of such matters, (ii) Lender shall not have any responsibility
of any kind to inform Guarantor of such matters, and (iii) Lender are hereby
authorized to assume that Guarantor, by virtue of its relationships with
Borrower which are independent of this Guaranty, has full and complete knowledge
of such matters whenever Lender extends credit to Borrower or take any other
action which may change or increase Guarantor's liabilities or losses
hereunder).

      (b) notice that Lender, any Obligor, or any other Person has taken or
omitted to take any action under any Obligation Document or any other agreement
or instrument relating thereto or relating to any Obligation.

      (c) notice of acceptance of this Guaranty.

      (d) default, demand, presentment for payment, and notice of default,
demand, dishonor, nonpayment, or nonperformance.

      (e) notice of intention to accelerate, notice of acceleration, notice of
any Default or Event of Default, protest, notice of protest, notice of any
exercise of remedies (as described in the following Section 5 or otherwise), and
all other notices of any kind whatsoever.

      Section 5. Exercise of Remedies. Lender shall have the right to enforce,
from time to time, in any order and at Lender's sole discretion, any rights,
powers and remedies which Lender may have under the Obligation Documents or
otherwise, including judicial foreclosure, the exercise of rights of power of
sale, the taking of a deed or assignment in lieu of foreclosure, the appointment
of a receiver to collect rents, issues and profits, the exercise of remedies
against personal property, or the enforcement of any assignment of leases,
rentals, oil or gas production, or other properties or rights, whether real or
personal, tangible or intangible; and Guarantor shall be liable to Lender
hereunder for any deficiency resulting from the exercise by Lender of any such
right or remedy even though any rights which Guarantor may have against Borrower
or others may be destroyed or diminished by exercise of any such right or
remedy. No failure on the part of Lender to exercise, and no delay in
exercising, any right hereunder or under any other Obligation Document shall
operate as a waiver thereof; nor shall any single or partial exercise of

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any right preclude any other or further exercise thereof or the exercise of any
other right. The rights, powers and remedies of Lender provided herein and in
the other Obligation Documents are cumulative and are in addition to, and not
exclusive of, any other rights, powers or remedies provided by law or in equity.
The rights of Lender hereunder are not conditional or contingent on any attempt
by Lender to exercise any of its rights under any other Obligation Document
against any Obligor or any other Person.

      Section 6. Limited Subrogation.

      (a) Until all of the Obligations have been paid and performed in full
Guarantor shall have no right to exercise any right of subrogation,
reimbursement, indemnity, exoneration, contribution or any other claim which it
may now or hereafter have against or to any Obligor or any Security in
connection with this Guaranty, and Guarantor hereby waives any rights to enforce
any remedy which Guarantor may have against Borrower and any right to
participate in any Security until such time. If any amount shall be paid to
Guarantor on account of any such subrogation or other rights, any such other
remedy, or any Security at any time when all of the Obligations and all other
expenses guaranteed pursuant hereto shall not have been paid in full, such
amount shall be held in trust for the benefit of Lender, shall be segregated
from the other funds of Guarantor and shall forthwith be paid over to Lender to
be held by Lender as collateral for, or then or at any time thereafter applied
in whole or in part by Lender against, all or any portion of the Obligations,
whether matured or unmatured, in such order as Lender shall elect.

      (b) If Guarantor shall make payment to Lender of all or any portion of the
Obligations and if all of the Obligations shall be finally paid in full, Lender
will, at Guarantor's request and expense, execute and deliver to Guarantor
(without recourse, representation or warranty) appropriate documents necessary
to evidence the transfer by subrogation to Guarantor of an interest in the
Obligations resulting from such payment by Guarantor; provided that such
transfer shall be subject to Section 3(d) above and that without the consent of
Lender (which Lender may withhold in its discretion) Guarantor shall not have
the right to be subrogated to any claim or right against any Obligor which has
become owned by Lender, whose ownership has otherwise changed in the course of
enforcement of the Obligation Documents, or which Lender otherwise has released
or wishes to release from its Obligations.

      Section 7. Successors and Assigns. Guarantor's rights or obligations
hereunder may not be assigned or delegated, but this Guaranty and such
obligations shall pass to and be fully binding upon the successors of Guarantor,
as well as Guarantor. This Guaranty shall apply to and inure to the benefit of
Lender and its successors or assigns. Without limiting the generality of the
immediately preceding sentence, Lender may assign, grant a participation in, or
otherwise transfer any Obligation held by it or any portion thereof, and Lender
may assign or otherwise transfer its rights or any portion thereof under any
Obligation Document, to any other Person, and such other Person shall thereupon
become entitled to all of the benefits in respect thereof granted to Lender
hereunder unless otherwise expressly provided by Lender in connection with such
assignment or transfer.

      Section 8. Subordination. Guarantor hereby subordinates and makes inferior
to the Obligations any and all indebtedness now or at any time hereafter owed by
Borrower to

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Guarantor. Guarantor agrees that after the occurrence of any Default or Event of
Default it will neither permit Borrower to repay such indebtedness or any part
thereof nor accept payment from Borrower of such indebtedness or any part
thereof without the prior written consent of Lender. If Guarantor receives any
such payment without the prior written consent of Lender, the amount so paid
shall be held in trust for the benefit of Lender, shall be segregated from the
other funds of Guarantor, and shall forthwith be paid over to Lender to be held
by Lender as collateral for, or then or at any time thereafter applied in whole
or in part by Lender against, all or any portions of the Obligations, whether
matured or unmatured, in such order as Lender shall elect.

      Section 9. Representations and Warranties. Without limitation of anything
contained in the Credit Agreement, Guarantor hereby represents and warrants to
Lender as follows:

      (a) The Recitals at the beginning of this Guaranty are true and correct in
all respects.

      (b) Guarantor is a corporation duly organized, validly existing and in
good standing under the laws of the state of its incorporation as set forth in
the Recitals to this Guaranty; and Guarantor has all requisite power and
authority to execute, deliver and perform this Guaranty.

      (c) The execution, delivery and performance by Guarantor of this Guaranty
have been duly authorized by all necessary corporate action and do not and will
not contravene its certificate or articles of incorporation or bylaws.

      (d) The execution, delivery and performance by Guarantor of this Guaranty
do not and will not contravene any law or governmental regulation or any
contractual restriction binding on or affecting Guarantor or any of its
Affiliates or properties, and do not and will not result in or require the
creation of any lien, security interest or other charge or encumbrance upon or
with respect to any of its properties.

      (e) No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or other regulatory body or third party
is required for the due execution, delivery and performance by Guarantor of this
Guaranty.

      (f) This Guaranty is a legal, valid and binding obligation of Guarantor,
enforceable against Guarantor in accordance with its terms except as limited by
bankruptcy, insolvency or similar laws of general application relating to the
enforcement of creditors' rights.

      (g) There is no action, suit or proceeding pending or, to the knowledge of
Guarantor, threatened against or otherwise affecting Guarantor before any court,
arbitrator or governmental department, commission, board, bureau, agency or
instrumentality which may materially and adversely affect Guarantor's financial
condition or its ability to perform its obligations hereunder.

      (h) The direct or indirect value of the consideration received and to be
received by Guarantor in connection herewith is reasonably worth at least as
much as the liability and obligations of Guarantor hereunder, and the incurrence
of such liability and obligations in return for such consideration may
reasonably be expected to benefit Guarantor, directly or indirectly.

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      (i) Guarantor is not "insolvent" on the date hereof (that is, the sum of
Guarantor's absolute and contingent liabilities, including the Obligations, does
not exceed the fair market value of Guarantor's assets). Guarantor's capital is
adequate for the businesses in which Guarantor is engaged and intends to be
engaged. Guarantor has not incurred (whether hereby or otherwise), nor does
Guarantor intend to incur or believe that it will incur, debts which will be
beyond its ability to pay as such debts mature.

      (j) All balance sheets, earning statements, financial data and other
information concerning Guarantor which have been furnished to Lender to induce
it to accept this Guaranty (or otherwise furnished to Lender in connection with
the transactions contemplated hereby or associated herewith) fairly represent
the financial condition of Guarantor as of the dates and the results of
Guarantor's operations for the periods for which the same are furnished. None of
such balance sheets, earnings and cash flow statements, financial data and other
information contains any untrue statement of a material fact or omits to state
any material fact which is necessary to make any statements contained therein
not misleading.

      Section 10. No Oral Change. No amendment of any provision of this Guaranty
shall be effective unless it is in writing and signed by Guarantor and Lender,
and no waiver of any provision of this Guaranty, and no consent to any departure
by Guarantor therefrom, shall be effective unless it is in writing and signed by
Lender, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

      Section 11. Invalidity of Particular Provisions. If any term or provision
of this Guaranty shall be determined to be illegal or unenforceable all other
terms and provisions hereof shall nevertheless remain effective and shall be
enforced to the fullest extent permitted by applicable law.

      Section 12. Headings and References. The headings used herein are for
purposes of convenience only and shall not be used in construing the provisions
hereof. The words "this Guaranty," "this instrument," "herein," "hereof,"
"hereby" and words of similar import refer to this Guaranty as a whole and not
to any particular subdivision unless expressly so limited. The phrases "this
section" and "this subsection" and similar phrases refer only to the
subdivisions hereof in which such phrases occur. The word "or" is not exclusive,
and the word "including" (in its various forms) means "including without
limitation". Pronouns in masculine, feminine and neuter genders shall be
construed to include any other gender, and words in the singular form shall be
construed to include the plural and vice versa, unless the context otherwise
requires.

      Section 13. Term. This Guaranty shall be irrevocable until all of the
Obligations have been completely and finally paid and performed, Lender has no
obligation to make any loans or other advances to Borrower, and all obligations
and undertakings of Borrower under, by reason of, or pursuant to the Obligation
Documents have been completely performed, and this Guaranty is thereafter
subject to reinstatement as provided in Section 3(d). All extensions of credit
and financial accommodations heretofore or hereafter made by Lender to Borrower
shall be conclusively presumed to have been made in acceptance hereof and in
reliance hereon.

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      Section 14. Notices. Any notice or communication required or permitted
hereunder shall be given as provided in the Credit Agreement.

      Section 15. Limitation on Interest. Lender and Guarantor intend to
contract in strict compliance with applicable usury law from time to time in
effect, and the provisions of the Credit Agreement limiting the interest for
which Guarantor is obligated are expressly incorporated herein by reference.

      Section 16. Loan Document. This Guaranty is a Loan Document, as defined in
the Credit Agreement, and is subject to the provisions of the Credit Agreement
governing Loan Documents.

      Section 17. Counterparts; Fax. This Guaranty may be executed in any number
of counterparts, each of which when so executed shall be deemed to constitute
one and the same Guaranty. This Agreement may be validly executed and delivered
by facsimile or other electronic transmission.

      SECTION 18. GOVERNING LAW. THIS GUARANTY IS TO BE PERFORMED IN THE STATE
OF LOUISIANA AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAWS OF SUCH STATE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

      SECTION 19. FINAL AGREEMENT. THIS WRITTEN AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES HERETO.

           [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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      IN WITNESS WHEREOF, Guarantor has executed and delivered this Guaranty as
of the date first written above.


                              PETROQUEST ENERGY, INC., a Delaware corporation


                              By: /s/ Charles T. Goodson
                                  -------------------------------------
                                  Charles T. Goodson
                                  Chairman of the Board and Chief
                                  Executive Officer