Fort Worth-based Quicksilver Resources Inc. moved forward with its Canadian coalbed methane (CBM) program in 2003, ending the year averaging 5.7 MMcf/d, with year-end production from its CBM wells at 16 MMcf/d. For all of its projects, full-year gas production totaled 34.5 Bcf, while production in the fourth quarter was 9.3 Bcf, up from 8.6 Bcf in 4Q2002. Natural gas, including natural gas liquids, comprised 89% of the company’s total production in the fourth quarter of 2003. Through its Canadian subsidiary, MGV Energy Inc., an $89 million capital budget for development and exploration is planned in 2004. Most of this budget will target CBM development while continuing exploration and piloting efforts in new areas. MGV presently holds leases and drilling rights on more than 525,000 net acres in Canada. Fourth quarter net income was $5.8 million on revenues of $36.8 million, or $0.23/share, compared with 4Q2002 net income of $4.3 million ($0.21/share) on revenues of $31.8 million. Net cash from operating activities for the fourth quarter of 2003 was $21.4 million versus $20.2 million for the fourth quarter of 2002.

Carrizo Oil & Gas announced the $8.2 million purchase of wells and leases in the Barnett Shale trend in Denton County, TX, from a private company. The non-operated properties have an average 39% working interest. The acquisition includes 21 existing gross wells (6.7 net) and interests in 1,500 net acres, on which the company expects another 27 drillsites. Current net production from the acquired properties is 1.4 MMcf/d and net proved reserves are internally estimated at 9.7 Bcfe. Probable reserves are internally estimated to be 8.1 Bcfe.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.