These lands, in the Wood River area south of Edmonton, had been jointly acquired by Ice Energy Limited and MGV with an extensive drilling and testing program ongoing since 2002. Multiple target horizons exist on these lands including Horseshoe Canyon coals/sands and Mannville coals/sands. Several coalbed methane (CBM) wells and conventional sand wells have been completed and are producing into sales at rates of more than 100 Mcf/d per well. MGV plans significant drilling in this area in 2004 including exploration, pilot and development wells targeting CBM.
Glenn Darden, Quicksilver's president and chief executive officer, commented on the acquisition.
"We are very pleased to be able to increase our land position in the Horseshoe Canyon CBM fairway. The Ice Energy joint venture was quite successful and set the stage for increased drilling and production in several areas. The large Wood River acreage block provides Quicksilver with both proved reserves and a large untested land base with a high potential for commercial production. With this acquisition, we now operate more than 95 percent of our Canadian acreage, allowing us to further improve efficiencies."
The sale, which was negotiated with Ice Energy Limited, closed on January 8, 2004 in conjunction with the sale of Ice Energy to Enerplus Resources Fund. MGV and Enerplus continue to hold joint interests in the Joffre area where a CBM development project is planned for 2004.
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