Glenn M. Darden
Thank you, John. Good morning. Quicksilver Resources reported net income for the third quarter of 2011 of $29 million or $0.17 per diluted share compared to net income of $22 million or $0.13 per diluted share in the prior period. Third quarter 2011 adjusted net income was $6 million or $0.03 per diluted share. Financial results for the current quarter were impacted by noncash gain of $30 million related to mark-to-market impact of long-term derivatives, a noncash gain of $12 million associated with the company's equity interest in BreitBurn Energy Partners' second quarter 2011 derivative adjustments, a gain of $10 million from the sale of BreitBurn units and a loss of $15 million for the acceleration of unamortized debt insurance costs, professional services in connection with strategic transactions, and to settle pending claims associated with the previously disclosed legal litigation. We've made progress on several fronts on the operational and transaction projects, and our investments are beginning to bear fruit.
Starting with the Barnett, our production continues to grow and this area has the most impact on overall company growth at this point, which will be approximately 18% year-over-year. We had some frac-ing delays in Lake Arlington which reduced our projected production number, but overall, our Barnett operation is running efficiently. As we recently disclosed, Quicksilver's putting certain of the Barnett assets into a newly formed master limited Partnership.
The company is on track to file an S-1 registration document with the SEC in the coming weeks which will outline the details of the MLP. In Canada, most of our efforts and budget have been directed to the Horn River Basin project, where we now have drilled a total of 8 horizontal wells into the Muskwa and Klua formations. We have 4 wells online, which are exceeding our early projections, with the best well projected to have an EUR of close to 20 BCF. Quicksilver will be drilling an additional 4 wells this year before the year end and will plan to complete these by the end of the first quarter of 2012.
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