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Quicksilver Resources Acquires 19 Licenses in Horn River Basin of British Columbia; Updates First-Quarter 2008 Guidance

SOURCE:

Quicksilver Resources Inc.

2008-04-07 05:00:00

Quicksilver Resources Acquires 19 Licenses in Horn River Basin of British Columbia; Updates First-Quarter 2008 Guidance

FORT WORTH, TX–( EMWNews – April 7, 2008) – Quicksilver Resources Inc. (NYSE: KWK) today

announced that it has acquired 19 licenses covering approximately 127,000

net contiguous acres in the Horn River Basin in northeast British Columbia.

The company has identified more than 500 feet of gross thickness from the

Upper Devonian Muskwa and Klua shale formations at depths ranging from

7,800 to 9,000 feet on the licenses.

“Our new ventures team in Canada has done an excellent job of applying the

company’s extensive knowledge of unconventional gas reservoirs to identify

and acquire these licenses in one of the most exciting emerging basins in

North America,” said Glenn Darden, Quicksilver president and chief

executive officer. “The Muskwa and Klua shales have the right

characteristics which we believe can provide a significant resource

opportunity for Quicksilver.”

Quicksilver acquired the licenses during Crown lease sales held in November

2007 and March 2008 at a total average cost of approximately C$655 per

acre. The company plans to drill up to four wells on this acreage during

the upcoming 2008-2009 winter drilling season.

Quicksilver’s first-quarter 2008 production volumes are now expected to

average approximately 211 MMcfe per day. Increased expected revenues, due

to higher commodity prices for natural gas and related natural gas liquids,

are expected to be partially offset by increased price-related operating

costs. As a result, unit operating costs for the first quarter of 2008 for

production, gathering and processing and transportation are now projected

in the range of $1.80 to $1.90 per Mcfe.

In Quicksilver’s first-quarter 2008 earnings, the company will include

approximately $6.2 million of pre-tax earnings from an equity affiliate.

The earnings are attributable to the company’s approximate 32% ownership in

BreitBurn Energy Partners L.P.’s (BBEP) fourth-quarter 2007 results from

the date of acquisition of the BBEP units on November 1, 2007. Quicksilver

received approximately $9.7 million of cash distributions from the BBEP

units during the first quarter of 2008.

About Quicksilver Resources

Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude

oil exploration and production company engaged in the development and

acquisition of long-lived, unconventional natural gas reserves, including

coalbed methane, shale gas, and tight sands gas in North America. The

company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas 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

The statements in this press release regarding future events, occurrences,

circumstances, activities, performance, outcomes and results are

forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. Although these statements reflect the

current views, assumptions and expectations of Quicksilver Resources’

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

Resources’ financial condition, results of operations and cash flows

include: changes in general economic conditions; fluctuations in natural

gas, natural gas liquids and crude oil prices; failure or delays in

achieving expected production from natural gas, natural gas liquids and

crude oil exploration and development projects; effects of hedging natural

gas, natural gas liquids and crude oil prices; uncertainties inherent in

estimates of natural gas, natural gas liquids and crude oil reserves and

predicting natural gas, natural gas liquids and crude oil reservoir

performance; effects of hedging natural gas, natural gas liquids and crude

oil; competitive conditions in our industry; actions taken by third

parties, including operators, processors and transporters; changes in the

availability and cost of capital; delays in obtaining oilfield equipment

and increases in drilling and other service costs; 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; and the effects of existing or future litigation;

as well as, other factors disclosed in Quicksilver Resources’ 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.

KWK 08-08

Investor & Media Contact:
Rick Buterbaugh
(817) 665-4835

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