Quicksilver buys CBM, production acreage in central Alberta

Quicksilver Resources reported its acquisition of a 50% working interest in 76,800 acres of mineral rights, 10.5 net wells, 550 Mcfd of net natural gas production, and 5 bcf of net proved gas reserves in central Alberta.

Jan. 13, 2004

By OGJ editors

HOUSTON, Jan. 13 -- Fort Worth-based Quicksilver Resources Inc. Monday reported its acquisition of a 50% working interest in 76,800 acres of mineral rights, 10.5 net wells, 550 Mcfd of net natural gas production, and 5 bcf of net proved gas reserves in central Alberta. The assets were purchased for $54 million.

With this purchase, Quicksilver, through its wholly owned subsidiary MGV Energy Inc. (MGV), now holds 100% operated working interest in these acres.

"These lands, in the Wood River area south of Edmonton, had been jointly acquired by Ice Energy Ltd. and MGV with an extensive drilling and testing program ongoing since 2002," Quicksilver noted. The acreage holds multiple-target horizons including Horseshoe Canyon and Mannville coals and sands, the company said.

Several coalbed methane wells and conventional sand wells have been completed on the acreage and are producing at more than 100 Mcfd/well, Quicksilver said.

MGV said it plans to drill exploration, pilot, and development wells in the area this year, mainly targeting CBM plays.