Quicksilver Resources (KWK) Updates Daily Production Details
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Quicksilver Resources Inc. (NYSE: KWK) today announced that its current average daily production is approximately 340 million cubic feet of natural gas equivalent (MMcfe), up approximately 10% from its average third-quarter 2009 rate of approximately 311 MMcfe per day. The company remains on pace to produce an average of more than 325 MMcfe per day in 2009, another company record and up more than 24% from the prior-year rate. The growth in volumes is being fueled by continued development of the Barnett Shale formation in the Fort Worth Basin, primarily from company-operated projects at Alliance and Lake Arlington. These two projects, which produce dry gas from Tarrant and Denton counties, complement the company's ongoing activities in the liquids-rich southern portion of the basin, where improved efficiencies have increased the extraction of natural gas liquids (NGLs) approximately 9%, to approximately 125 barrels per million cubic feet (MMcf) of gas processed.
Daily production details as follows:
Daily production details as follows:
- Quicksilver's net production from its Alliance project is now approximately 71 MMcf per day, more than double the comparable rate from these properties when they were acquired just 15 months earlier. In the past 45 days, Quicksilver has brought on-line 24 new wells and resumed production from 24 existing wells resulting in a total of 129 wells currently on production in the Alliance area.
- Current net production from the company's Lake Arlington project is approximately 34 MMcf per day. Five new wells that came on-line in mid-June of this year have already produced more than 4 billion cubic feet (Bcf) of natural gas during their first four months of production. Two additional wells were brought on-line during the past month resulting in 39 wells on production in the Lake Arlington area. The company has deferred completion activities on 36 additional wells that have been drilled and cased in the area. In total, the project has produced approximately 32 Bcf since the first wells came on-line in October 2007.
- In the southern portion of the company's Fort Worth Basin acreage, Quicksilver's current production is approximately 160 MMcfe per day. The company also has 48 wells in this area that have been drilled and cased but has deferred completion activities. Much of this portion of the Fort Worth Basin contains natural gas with a much higher Btu content that results in a natural gas production stream that is rich in NGLs. Based on current NYMEX pricing of approximately $5.25 per million British thermal units (MMBtu) of natural gas and a basket of NGLs that yield approximately $33.50 per barrel, the value of Quicksilver's production in this portion of the basin is equivalent to approximately $8.25 per thousand cubic feet (Mcf) at the wellhead.
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