SOURCE: Quicksilver Resources Inc.

September 24, 2007 18:17 ET

Quicksilver Resources Increases 2007 Capital Budget

Increases Forecast for Texas Production

FORT WORTH, TX--(Marketwire - September 24, 2007) - Quicksilver Resources Inc. (NYSE: KWK) announced that its board of directors has unanimously approved a revised 2007 capital budget of $810 million, representing an increase of $200 million or approximately 33 percent from the initial budget of $610 million. The company also announced that it expects reported daily production volumes for 2007 to still average approximately 210 million cubic feet of natural gas equivalents (MMcfe), despite the previously announced divestment of volumes from Michigan, Indiana and Kentucky with an assumed effective date of November 1, 2007, due to an offsetting increase in expected production volumes in Texas.

"Through our operating team's successful efforts to continuously reduce drilling times for wells in the Fort Worth Basin Barnett Shale, we expect to drill more wells per rig this year than previously projected," said Glenn Darden, Quicksilver president and chief executive officer. "Therefore, we are expanding our well program without increasing from the 14 rigs that we currently have working in this basin. As a result of this increased drilling activity, we anticipate production volumes in Texas to increase at a greater rate than previously expected."

The $200 million increase in the 2007 capital budget includes approximately $150 million for drilling, approximately $40 million for leasehold acquisitions, approximately $5 million for gathering and processing facilities and approximately $5 million for corporate expenditures. Nearly all of the budget increase is expected for activities in the Fort Worth Basin.

Update on BreitBurn Transaction

Quicksilver has determined that the previously announced transaction to contribute all of its properties and facilities in Michigan, Indiana and Kentucky to BreitBurn Operating L.P. will be treated as continuing operations for financial reporting purposes. The transaction will be effective at closing, which is expected to occur by November 1, 2007.

Production Guidance

As a result of the increased drilling activity coupled with the revised accounting treatment for the BreitBurn transaction, Quicksilver updated its expectations for reported production volumes for the remainder of 2007. Third-quarter production volumes are projected to average in the range of 220 MMcfe to 230 MMcfe per day. Fourth-quarter volumes are projected to average in the range of 210 MMcfe to 220 MMcfe per day, reflecting the divestment of approximately 75 MMcfe per day of volumes from Michigan, Indiana and Kentucky with an assumed effective date of November 1, 2007, partially offset by increasing volumes from the Fort Worth Basin.

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 coal bed methane, shale gas, and tight sands gas in North America. The company has U.S. offices in Fort Worth, Texas; Granbury, Texas; Gaylord, Michigan; Corydon, Indiana 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.

KWK 07-15

Contact Information

  • Investor & Media Contact:
    Quicksilver Resources Inc.
    Rick Buterbaugh
    (817) 665-4835