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