These 4 wells will be drilled on 1 central pad and connected to sales. At this point, it looks like we have a high BTU gas well in the 1 Exshaw well we have completed. But we have only completed approximately 30% of the lateral. The well is shut in currently and we intend to complete the remaining lateral section after winter operation. We have recovered just 20% of the frac load, thus far, so we don't yet have a clear picture of what this well can do.
We continue to make progress on the infrastructure side of the Horn River, and recently, we executed a memorandum of understanding with KKR, to team up on a joint venture to develop and build a Midstream business in the basin. The proposed deal structure, which is scheduled to close in the next several weeks, provides for a $125 million upfront payment to Quicksilver and financing for buildout of processing and gathering assets in the initial stages of the business. Quicksilver will contribute its midstream assets that are already in place, which comprised a 20-mile, 20-inch pipeline and compression. The JV expects to complete the first train of processing facilities in 2014, which will require approximately $120 million of capital. Each party will own a 50% interest in the entity and Quicksilver will operate.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV