SOURCE: Quicksilver Gas Services LP

November 20, 2008 16:29 ET

Quicksilver Gas Services Announces 2009 Capital Budget

FORT WORTH, TX--(Marketwire - November 20, 2008) - Quicksilver Gas Services LP (NYSE Arca: KGS) announced that its board of directors has approved a capital expenditure budget of $35 million for 2009. The 2009 capital expenditure budget includes approximately $15 million for the construction of pipelines, gathering systems and well connections, $16 million for compression and $4 million associated with its natural gas processing plants.

"Prior investment in our plant and pipeline infrastructure has put the company in the enviable position that supports ongoing growth with minimal capital expenditures," said Toby Darden, Quicksilver Gas Services president and chief executive officer. "Our newest processing plant is expected to be completed in the first quarter of 2009 allowing for added throughput from Quicksilver Resources and other third-party producers."

In addition, Quicksilver Resources Inc. (NYSE: KWK) has approved pipeline-related capital expenditures associated with the Fort Worth Basin of approximately $80 million for 2009. Quicksilver Gas Services will operate the majority of these assets on behalf of Quicksilver Resources and may acquire these assets over time.

About Quicksilver Gas Services

Fort Worth, Texas-based Quicksilver Gas Services is a growth-oriented limited partnership in the business of gathering and processing natural gas produced from the Barnett Shale geologic formation in the Fort Worth basin of north Texas. The company began operation in 2004 to provide these services to Quicksilver Resources Inc., which owns our general partner. For more information about Quicksilver Gas Services, visit www.kgslp.com.

Forward-Looking Statement

The statements in this news release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Quicksilver Gas Services LP's 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 Gas Services LP's financial condition, results of operations and cash flows include: changes in general economic conditions; fluctuations in natural gas prices; failure or delays in Quicksilver Resources Inc. and third parties achieving expected production from natural gas projects; competitive conditions in our industry; actions taken or non-performance by third-party suppliers, contractors, operators, processors, transporters and customers; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; the effects of existing and future laws and governmental regulations; the effects of future litigation; and other factors disclosed in Quicksilver Gas Services LP's 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.

KGS 08-11

Contact Information

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