Quicksilver Resources Inc. Q3 2008 Earnings Call Transcript

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2008-11-05 19:17:13.0

Tags: Alliance, Rig, Call Transcript, Earnings, Quicksilver Resources Inc., Strategy, Management, Seeking Alpha, Alliance, Rig, Call Transcript, Earnings, Quicksilver Resources Inc., Strategy, Management, Seeking Alpha

Question-and-Answer Session

Operator

[Operator Instructions]. Your first question comes from line of David Kistler.

David Kistler

Good morning guys.

Glenn Darden

Good morning.

David Kistler

Hey quick question on the Barnett production going forward. As you have moved from 14 rigs to 10 rigs in the Barnett and reallocated one rig, one more rig into Lake Arlington and the Alliance acquisition area, so you will have five instead of four, what is that from the efficiencies gained in a higher production in Lake Arlington and the Alliance what is that do to total production vis-à-vis the cut in rig count?

Glenn Darden

Well actually -- we are going to -- we have announced earlier that we are going to reduce that one rig more, so we will..

David Kistler

To nine rigs, Yeah.

Glenn Darden

Yeah nine rigs for the year of 2009. We will grow production at a minimum to 25%. I think what we have is flexibility in moving these rigs around. We’ll have at least four in the Southern Barnett and then the other five are split between Lake Arlington and Alliance. But we will bring our first volumes on or first new volumes, new wells that we’ve drilled volumes on in December from the Alliance Project. But it just gives us some flexibility. What it will impact a little bit is perhaps because there’s more drilling in Lake Arlington and Alliance and those are dry areas of the basin the dry gas areas, will have less NGL as a percentage of the total. The total will rise but less as a percentage.

David Kistler

Okay so just and I’m just trying to just this in a bell but at 35% decrease in rig account however you can still maintain 25% production growth out of the Barnett, just kind of make sure I have got that correct?

Glenn Darden

Okay. Impressive. The production optimization program -- excuse me that’s 25% total company growth.

David Kistler

That’s what I am trying, I m trying to get for that

Glenn Darden

Okay, higher percentage for the Barnett

David Kistler

Okay, even higher in the Barnett okay, perfect. Thank you for that clarification. Production optimization program and kind of the Horseshoe Canyon area, similar kind of getting to rig efficiencies and to total recoveries 65 less wells than expected yet keeping production the same levels, what’s the real driver of that kind of recovery or efficiency gain?

 

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