Quicksilver Resources sets U.S., Canadian budget at $235 million

MGV Energy, one of Alberta’s coalbed methane trailblazers, will remain among the front-runners in 2005, drilling 490 gross wells on its southern Alberta land holdings.

A privately held unit of Texas-based independent Quicksilver Resources, MGV’s program will result in 280 net wells because of joint-venture projects where working interests are divided.

This year’s capital budget for Canada is expected to be about $100 million.

Quicksilver President and Chief Executive Officer Glenn Darden said in a statement that the Canadian coalbed methane venture now has proved gas reserves of more than 250 billion cubic feet — an addition of better than 100 bcf in 2004.

Overall, Quicksilver has set capital spending for the year at $235 million and anticipates more than a 20 percent increase in production volumes over 2004.

It has also earmarked $105 million to drill 40 net Barnett Shale wells on its 205,000 net acres of leases in north Texas.

The remaining $30 million will be spent on fractured shale projects in Michigan and Indiana/Kentucky in hopes of expanding a known productive fairway.

—Gary Park