Fort Worth, TX-based Quicksilver Resources Inc. plans to pump up its natural gas-heavy production by 20% in 2008 by redirecting some of its spending in the Barnett Shale.

The independent said Tuesday it would increase its 2008 spending by about 9% over this year. Spending would include $650 million for drilling, $160 million for gathering and processing facilities, $70 million for leasehold expense and $5 million for property and equipment.

Geographically, $790 million of the total amount is earmarked for Texas; $90 million will be directed to Canadian operations, and $5 million will be spent in Wyoming and Montana. Total capital expenditures include $35 million for exploratory drilling activities, primarily associated with the company’s extensive leasehold in the Delaware Basin of West Texas and in Canada.

“This budget provides appropriate levels of development funding for meaningful growth in reserves and production in 2008 and exploratory funding for future growth while maintaining a disciplined financial structure,” said CEO Glenn Darden. “We have intentionally restricted the growth rate of development from our sizable inventory of low-risk, high-return projects in the Fort Worth Basin Barnett Shale as we continue to evaluate the optimal development spacing for this world-class reservoir.”

Average daily production volumes for 2008 will be weighted 67% to natural gas, 30% to gas liquids and 3% to crude oil. Production volumes for 2008 are projected to average 255 MMcfe, which is 20% higher than output this year. After adjusting for asset sales, Quicksilver estimated production would jump more than 70% from the comparable 2007 projected level.

Quicksilver sold all of its northeastern properties in Michigan, Indiana and Kentucky to BreitBurn Energy Partners LP effective Nov. 1. The properties represented average daily production of 75 MMcfe (see Daily GPI, Nov. 5).

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