Quicksilver Gas Services Expands 2008 Capital Budget

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Tue Sep 2, 2008 9:01am EDT

  FORT WORTH, TX, Sep 02 (MARKET WIRE) -- 
Quicksilver Gas Services LP (NYSE Arca: KGS) announced that its board of
directors has unanimously approved an increase of approximately $65
million to its 2008 capital budget to further expand and upgrade the
company's gathering and processing network. In addition, the board
approved approximately $40 million for the purchase of the Lake Arlington
dry gathering system from Quicksilver Resources Inc. (NYSE: KWK).

    The 2008 capital budget now totals $185 million and includes approximately
$39 million for the construction of pipelines and gathering systems,
approximately $26 million for compression, approximately $80 million
associated with the construction of a third natural gas processing plant
and approximately $40 million for the purchase of the Lake Arlington dry
gathering system.

    "Rapid demand growth for our gathering and processing services has
provided incentives to expand and further upgrade our system at a faster
rate than previously anticipated," said Thomas (Toby) Darden, Quicksilver
Gas Services president and chief executive officer. "We are adding
compression to our system to decrease line pressures and enable greater
throughput to the existing gathering system. We are also fast-tracking
start-up of the first phase of our third processing plant to become
operational by year end."

    Separately, Quicksilver Resources' board of directors has approved
additional pipeline-related capital expenditures associated with the Fort
Worth Basin of approximately $20 million for 2008. Quicksilver Gas
Services will operate these assets on behalf of Quicksilver Resources and
expects to acquire these assets over time.

    About Quicksilver Gas Services

    Fort Worth, Texas-based Quicksilver Gas Services is a growth-oriented
limited partnership in the business of gathering and processing natural
gas produced from the Barnett Shale geologic formation in the Fort Worth
basin of north Texas. The company began operation in 2004 to provide these
services to Quicksilver Resources Inc., which owns our general partner.
For more information about Quicksilver Gas Services, visit www.kgslp.com.

    Forward-Looking Statement

    The statements in this news release regarding future events, occurrences,
circumstances, activities, performance, outcomes and results are
forward-looking statements. Although these statements reflect the current
views, assumptions and expectations of Quicksilver Gas Services LP's
management, the matters addressed herein are subject to numerous risks and
uncertainties, which could cause actual activities, performance, outcomes
and results to differ materially from those indicated. Factors that could
result in such differences or otherwise materially affect Quicksilver Gas
Services LP's financial condition, results of operations and cash flows
include: changes in general economic conditions; fluctuations in natural
gas prices; failure or delays in Quicksilver Resources Inc. and third
parties achieving expected production from natural gas projects;
competitive conditions in our industry; actions taken by third-party
operators, processors and transporters; changes in the availability and
cost of capital; operating hazards, natural disasters, weather-related
delays, casualty losses and other matters beyond our control; construction
costs or capital expenditures exceeding estimated or budgeted costs or
expenditures; the effects of existing and future laws and governmental
regulations; and the effects of future litigation; as well as other
factors disclosed in Quicksilver Gas Services LP's filings with the
Securities and Exchange Commission. Except as required by law, we do not
intend to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.

    KGS 07-06

    

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817-665-4835

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