Barnett Shale

Quicksilver Resources Reports On Barnett Shale Activity For Third Quarter of 2011

Quicksilver Resources (KWK) issued an operational update for the third quarter of 2011 on the company’s activities in the Barnett Shale. 

Quicksilver Resources operated two rigs in the Barnett Shale and drilled 13 gross or 11.9 net wells.  The company also put onto sales 44 gross or 38.1 net wells.

Quicksilver Resources reported that the company’s inventory of Barnett Shale wells that are awaiting completion or connection to pipelines stood at 53 as of 9/30/2011.  The company expects this inventory to decline to 50 wells by the end of 2011. 

EOG Resources Reports Production On Six Barnett Shale Wells

EOG Resources (EOG) reported the production results for six wells drilled into the Barnett Shale combo play in Montague County in Texas.  The names and the initial production rates of these Barnett Shale wells are:

Ketchum Unit #1H – 496 barrels of oil and 354,000 cubic feet of natural gas per day.

Ketchum Unit #2H - 638 barrels of oil and 455,000 cubic feet of natural gas per day.

The Farrell Unit A #1H, Farrell Unit A #2H, Farrell Unit B #3H and Farrell Unit B #4H wells had initial production rates ranging from 335 to 475 barrels of oil per day and from one million to 1.4 million cubic feet of natural gas per day.

Quicksilver Resources To Create MLP With Barnett Shale Assets

Quicksilver Resources (KWK) reported that the company will create a master limited partnership (MLP) and contribute part of its Barnett Shale assets to this new entity.

Quicksilver Resources said that the MLP will conduct an initial public offering and use some of the proceeds to purchase these assets.  The company expects to raise $400 million from the sale and use the proceeds to retire debt.

Quicksilver Resources reported that the Barnett Shale assets being sold comprise 18% of the company’s production and 15% of its 2010 proved reserves in this basin. The company will own a large percentage of the MLP and act as the general partner of this entity.