FORT WORTH, TX--(Marketwire -08/28/12)- Quicksilver Resources Inc. (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.
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.
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