Profile: Quicksilver Resources Inc (KWK)
11 Jul 2014
Quicksilver Resources Inc., incorporated on December 18, 1997, is an independent oil and gas company engaged primarily in the acquisition, exploration, development and production of onshore oil and gas in North America and are based in Fort Worth, Texas. The Company is focused primarily on unconventional reservoirs where hydrocarbons may be found in geological conditions, such as fractured shales and coalbeds. Its producing oil and gas properties in the United States are principally located in Texas, Colorado, Wyoming and Montana, and in Canada in Alberta and British Columbia. The Company’s three core areas include Barnett Shale, Horn River and Horseshoe Canyon. It also has exploration opportunities in North America in Midland and Delaware basins in West Texas and Sand Wash Basin in northwest Colorado regions. As of December 31, 2012, it had a total proved reserves of approximately 1.5 trillion cubic feet of natural gas equivalents of which 76% is natural gas and 23% is natural gas liquids. During the year ended December 31, 2012, it had a total production of 132 billion cubic feet of natural gas equivalents or 360 million cubic feet of natural gas equivalent per day. In May 2014, the Company closed the sale to Southwestern Energy Production Company of its jointly owned holdings with SWEPI LP (Shell) in the Sand Wash Basin.
The Company sells natural gas, NGLs and oil to a variety of customers, including utilities, oil and natural gas companies or their affiliates, industrial companies, trading and energy marketing companies and other users of petroleum products. Its principal oil and gas properties consist of non-producing and producing oil and gas leases and mineral acreage, including reserves of natural gas and oil in place.
The Company’s 81% of its total proved reserves and over 76% of its total average daily production in 2012 were in its Barnett Shale Asset. As of December 31, 2012, the Company had approximately 127,000 net acres in the Barnett Shale of, which approximately 60% is held by production. In 2012, sales of NGLs represented 24% of its Barnett Shale Asset production. During 2012, the Company drilled 22 wells and completed 45 wells in its Barnett Shale Asset primarily from multi-well drilling pads. In 2012, it had drilled a total of 1,052 wells in its Barnett Shale Asset.
The Company’s leases total 125,000 acres across Reeves, Pecos, Jeff Davis, Upton and Crockett Counties. It drilled and completed short-lateral well in Pecos County in August 2012, which targeted the Third Bone Springs formation, and it drilled and completed another short-lateral well in Upton County in December 2012, which targeted the Wolfcamp formation. Total proved reserves in its West Texas Asset were 0.6 billion cubic feet of natural gas equivalents in 2012.
The Company holds approximately 167,000 primarily non-operated net acres in the Sand Wash basin. As of December 31, 2012, the Company conducted exploratory activities and had eight producing wells. In 2012, it drilled and completed three vertical wells using a variety of stimulation methods and drilled one well. In 2012, total proved reserves in its Niobrara Asset were 0.5 billion cubic feet of natural gas equivalents.
The Company holds approximately 129,000 net acres in its Horn River Asset. During August 2012, it completed an eight-well pad, with projected flow rates from each well between 23 million cubic feet per day and 34 million cubic feet per day at high flowing pressures. As of December 31, 2012, the Company had eight wells producing and four wells capable of production that were temporarily shut-in.
As of December 31, 2012, the Company’s Horseshoe Canyon Asset proved reserves were 162.0 billion cubic feet of natural gas equivalents, all of which was natural gas. As of December 31, 2012, it had 40,526 undeveloped acres in its Horseshoe Canyon Asset.
The Company’s Rockies area includes its Southern Alberta Asset which is located in the Cut Bank field in Montana. The Company has approximately 143,000 net acres in the Southern Alberta basin, 73% of which is held by production. As of December 31, 2012, proved reserves from these properties were 15.5 billion cubic feet of natural gas equivalents, of which 90% was oil or natural gas liquids. Additionally, it holds assets within the Greater Green River Basin prospective for natural gas. It has approximately 39,514 net acres located in northwest Colorado and southern Wyoming.
Quicksilver Resources Inc
Suite 3700, Unit 19, 801 Cherry
FORT WORTH TX 76102