Quicksilver will begin initial drilling operations in the Horn River Basin during the upcoming winter drilling season. The company also expects to evaluate four to six additional wells in the Delaware Basin of west Texas.
Production volumes for 2008 are projected to average approximately 275 million cubic feet per day of natural gas equivalents (MMcfe), up more than 80% from the 2007 average of 151 MMcfe per day adjusted for the divestment of the company’s Northeast operations in Michigan, Indiana and Kentucky effective November 1, 2007, which represented average production of approximately 75 MMcfe per day. Production volumes for 2009 are projected to average approximately 390 MMcfe per day, up more than 40% from the projected 2008 average. The increase in production is primarily associated with the ongoing drilling activities in the company’s Fort Worth Basin program. Quicksilver has hedges covering approximately 75% and 65% of its projected natural gas production for the second half of 2008 and full-year 2009, respectively, with a weighted-average NYMEX floor price of approximately $8.60 per thousand cubic feet and participation in price increases above these levels.
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 exploration and development projects; 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 prices; 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.
Investor & Media Contact:
Quicksilver Resources Inc.
Rick Buterbaugh
(817) 665-4835
KWK 07-23
