Quicksilver pumps US$89 million into Canada

Gary Park

Petroleum News Calgary correspondent

MGV Energy, the Canadian subsidiary of Texas-based Quicksilver Resources, will drill 350 (280 net) wells on seven coalbed methane prospects in the Palliser block of southern Alberta.

One of the pioneers in tapping coalbed methane in Canada, Quicksilver will spend US$89 million on exploration and development as it builds on a production of about 20 million cubic feet per day.

Once conventional activity is factored in, Quicksilver expects to participate in 450 gross wells in Canada.

MGV currently holds 525,000 net acres in Canada and acquired a 100 percent working interest in January in another 76,800 acres of the Wood River area of southern Alberta.

Of its proved reserves of 881 billion cubic feet equivalent at the end of 2003, Quicksilver assigned 131.3 billion cubic feet equivalent to Canadian coalbed methane, up almost 100 million cubic feet from a year earlier.

Company President and Chief Executive Officer Glenn Darden told a conference call that 20 percent of the Canadian drilling will be targeted at exploration.

The program will include about 20 net wells on a conventional shallow-gas field operated by EnCana in southeastern Alberta.