Quicksilver Resources Q2 2007 Earnings Call Transcript

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2007-08-08 13:04:50.0

Tags: Quicksilver Resources Inc.

Question-and-Answer Session

Operator

[Operator Instructions]

Your first question is from Gil Yang with Citigroup.

Gil Yang - Citigroup

Good morning. Could you just comment on what is going on in West Texas in Culbertson County, Reeves County, that area? I think EOG has made some comments about that area and was wondering what you were thinking... your updated thinking there?

Glenn Darden - President and Chief Executive Officer

Gil, this is Glenn Darden. I said a few things in the prepared remarks. First of all, I think you need to remember West Texas is a very large area and where we are is miles and miles away from where EOG is. I don't really know what they have said about it.

What we are seeing in the field is a very thick section of Barnett. We have had initial gas rates in the one well that we have completed on a horizontal side and now we are focused in our initial work this year on drilling in this thickest area that we have found, about 800 feet of Barnett thickness.

So we are drilling some vertical wells there. We have drilled three. We are starting completion work this month on those three and we hope to have some results to talk about perhaps by year-end or first quarter.

Gil Yang - Citigroup

Okay. Thanks. I apologize that I got on late. Sorry to make you repeat that.

Glenn Darden - President and Chief Executive Officer

Thank you for the question.

Operator

Your next question is from Jeff Robertson with Lehman Brothers.

Jeffrey Robertson - Lehman Brothers

Thanks. Glenn, at Lake Arlington, I think... did I hear you right that the six wells you have drilled so far, you will have first production in the third quarter or was it the fourth?

Glenn Darden - President and Chief Executive Officer

Early in the fourth quarter is what we are looking at.

Jeffrey Robertson - Lehman Brothers

Are there infrastructure issues that you all have to put in place to move that gas out and if so, can you talk a little bit about what you are planning for in terms of capacity?

Glenn Darden - President and Chief Executive Officer

Well, there are infrastructure issues. It is our most urban setting, not fully in the city, but certainly some urban issues. Quicksilver Gas Services... well, I guess Quicksilver Resources is putting in the system and it is a dry system.

 

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