Press Release |
Quicksilver Resources Provides Operational Update on West Texas and Horn River Basin
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FORT WORTH, TX, Aug 28 (Marketwire) -- Quicksilver Resources Inc. (NYSE: KWK) is providing an operational update on its recently-completed well in the Delaware Basin in West Texas and the completion of the eight-well pad in the Horn River Basin in British Columbia. West Texas In Pecos County, the company re-entered the vertical Price Ranch #1 well and completed a 1,500-foot horizontal lateral. This lateral was completed with six fracture stages in the Third Bone Springs formation. The well, in which Quicksilver has a 100% working interest, produced at an initial rate of 300 Boed, with 80% oil and 20% high-BTU natural gas and has flowed at an average 10-day rate of 200 Boed. The company plans to drill additional wells having 6,000 to 7,500-foot laterals and at least 20 fracture stages. Quicksilver holds approximately 45,000 acres surrounding this well in Pecos County and an additional 60,000 acres across the southern Midland and Delaware basins in West Texas which the company believes to be prospective of oil from the Bone Springs and Wolfcamp formations. Horn River Basin Cleanup activities on the eight-well pad are complete, and each well is now capable of production. Wells on the pad were completed with laterals ranging from 5,400 to 8,600 feet with 16 to 26 stages in each well, averaging 23 stages. With flow rates restricted by the capability of surface equipment, all eight wells have significantly exceeded initial production expectations with individual flow rates between 23 MMcfd and 34 MMcfd at very high flowing pressures. Based on the strong initial flow tests, Quicksilver expects to see a significant improvement in the type curves for both the Klua and Muskwa primary pay sections. Five Muskwa and three Klua wells were drilled on the pad. The company believes the results from these wells, the continuous nature of the pay sections as shown in 3-D seismic and the pay mapping from the six exploration wells drilled on the northern part of Quicksilver's acreage are indicative of the continuity of the formation throughout the company's 130,000 net acre position. Currently, the pad is producing 73 MMcfd from three wells and the remaining wells are shut-in. The company expects to further restrict the flow from the pad to meet minimum midstream commitments under various agreements, and subsequently, to increase the flow rate to match elevated midstream commitments as necessary. "The results from our Bone Springs completion are a very good way to kick-off our oil drilling program in West Texas. We expect that future wells will have significantly longer laterals and much larger fracture treatments which should translate into greater production volumes," said Quicksilver Chairman Toby Darden. "In addition, we are highly encouraged with our latest completions in the Horn River Basin and intend to continue our efforts to integrate these gas volumes into better downstream markets, including LNG exports." About Quicksilver Resources Fort Worth, Texas-based Quicksilver Resources is an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas, primarily from unconventional reservoirs including gas from shales and coal beds in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Craig, Colorado; Steamboat Springs, Colorado and Cut Bank, Montana. Quicksilver's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. For more information about Quicksilver Resources, visit www.qrinc.com. Forward-Looking Statements Certain statements contained in this press release and other materials we file with the SEC, or in other written or oral statements made or to be made by us, other than statements of historical fact, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events. Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," and similar expressions are used to identify forward-looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include: changes in general economic conditions; fluctuations in natural gas, NGL and oil prices; failure or delays in achieving expected production from exploration and development projects; uncertainties inherent in estimates of natural gas, NGL and oil reserves and predicting natural gas, NGL and oil reservoir performance; effects of hedging natural gas, NGL and oil prices; fluctuations in the value of certain of our assets and liabilities; competitive conditions in our industry; actions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters, customers and counterparties; changes in the availability and cost of capital; delays in obtaining oilfield equipment and increases in drilling and other service costs; delays in construction of transportation pipelines and gathering, processing and treating facilities; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; the effects of existing and future laws and governmental regulations including environmental and climate change requirements; the effects of existing or future litigation; failure to or delays in completing Quicksilver's proposed initial public offering of common units representing limited partner interests in a master limited partnership holding portions of our Barnett Shale assets; and additional factors described elsewhere in this press release. This list of factors is not exhaustive, and new factors may emerge or changes to these factors may occur that would impact our business. Additional information regarding these and other factors may be contained in our filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. All such risk factors are difficult to predict, and are subject to material uncertainties that may affect actual results and may be beyond our control. The forward-looking statements included in this press release are made only as of the date of this press release, and we undertake no obligation to update any of these forward-looking statements to reflect subsequent events or circumstances except to the extent required by applicable law. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. KWK 12-16 Investor & Media Contact: David Erdman (817) 665-4023 Copyright 2012, Marketwire, All rights reserved. -0-