NEW YORK (TheStreet) -- Quicksilver Resources (KWK) was gaining 10.1% to $1.31 Wednesday after announcing initial results of its first horizontal well under its exploration agreement with Eni in Pecos County, Texas.
The company announced that the Stallings #1H well started flow on August 15, and is currently flowing up casing on a restricted choke setting of 34/64, at a rate of 750 barrels of oil equivalent a day. About 15% of the fracture fluid in the Third Bone Spring interval where the well is located has been recovered.
Quicksilver is currently drilling Mitchell #1H, which will be its second joint venture well with Eni. The well is targeting a combined section of the Bone Springs and Wolfcamp formations.
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TheStreet Ratings team rates QUICKSILVER RESOURCES INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUICKSILVER RESOURCES INC (KWK) a SELL. This is based on several weak investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: