Barclays Capital CEO Energy-Power Conference Toby Darden, Chairman New York, New York September 6-7, 2011 NYSE: KWK www.qrinc.com
Compelling Investment Opportunity High-quality resource base 68% proved developed 12 Tcfe of proven unbooked resource potential High full-cycle margins Cost-free option on four developing oil plays Significant current market…
Market Valuation Gap High-Quality Reserves 2010 Developed Reserves 2010 Full-cycle Margin/Mcfe Produced* 100% 4 75% 2.78 68% 3 Percent /Mcfe 50% 2 25% 1 0% 0 Enterprise Value/Mcfe of Reserves** 6 June 30, 2011 5 4…
2011 Goals Close the market value gap by: Growing production 20% Maintaining low full-cycle unit cost structure to maximize margins Commercializing Horn River natural gas resource development; Pursue potential upstream and…
Asset Overview A proven record of success in unconventional reservoirs that provide a balance of predictable growth and exploratory opportunities. Horn River Basin Horseshoe Canyon CBM 130,000 net acres 316,000 net acres 10 Tcf…
Live within cash inflows Estimated Capital Forecast 696 Cash Sources Potential Joint Ventures: HRB Midstream Operations 320 HRB Upstream BreitBurn Units Niobrara Sold 146 Montana Bakken West Texas Remaining 150 616 Barnett…
FWB Barnett Consistent, Repeatable Growth Still a premier, low-cost basin Alliance Lake Arlington Denton 10,000 net acres 5,000 net acres 72.5% WI; 11% avg. royalty 100% WI; 26% avg. royalty EUR of 4.0-4.5 Bcf EUR of 4.5-5.5 Bcf…
KWK Template Construction NYSE: KWK www.qrinc.com
Template Assembled NYSE: KWK www.qrinc.com
Gas Mining KWK Alliance Development vs. Competitors 2009/2010 2008/2009 2011/2012 2009/2010 NYSE: KWK www.qrinc.com
Gas Mining Results Alliance Gross Gas Volumes 350,000 300,000 250,000 Gross Gas (mcf/d) 200,000 150,000 100,000 50,000 0 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11…
Horn River Basin NE British Columbia Quicksilvers shareholders have the greatest per share impact with continued success in the Horn River C-29-D flare, estimated at 11 MMcf/d while running casing in Muskwa lateral Winter…
Horn River Basin Quicksilvers Position 130,000 acres: Quicksilver 130k acres 20 licenses: 100% WI Expect to convert virtually Devon all licenses to 10-year 153k acres leases in 2012 Resource potential: 10 Tcf of natural gas…
KWKs Horn River Drilling Activity Yukon NW Territories Horn River 4 Muskwa/Klua wells drilled & completed British b-91-G drilled Columbia Alberta c-81-G drilled 4 additional Muskwa Calgary Winter freeze-ins wells drilled…
KWK Base Case Cash Flow 3,000,000 18,000,000 Total Cash Flow Max Investment: 538 MM (yearly avg) Op Cash Flow 2,500,000 Total Capital 15,000,000 Cum Cash Flow Cum Capital 2,000,000 12,000,000 Cash Flow (Ck) 1,500,000…
KWKs HRB Multiple Take-away Options Commitment w/ TCPL Horn River Basin Multiple Markets ECA TCPL Horn River Cabin & Spectra Extension 2014 Low-cost Ft. Nelson Cabin Gas Plant transportation Gas Plant Aitken Creek…
KWK Midstream Options to TCPL KWK option to AECO Treatment 0.50 TCPL receipt charge 0.26 0.76 Spectra option for 3rd parties to AECO RGT to Ft. Nelson 0.31 Ft. Nelson treatment 0.67 T-North receipt charge + TCPL 0.58 1.56 NYSE:…
Compressor Site NYSE: KWK www.qrinc.com
Asian LNG Supply Shortfall WoodMac forecasts significant supply need between 2010 and 2017 NYSE: KWK www.qrinc.com
Colorado Summary 214,000 net acres Average NRI 81% 100 MM Bbls of oil resource potential 2011 activity: Between 8 and 14 vertical resource assessment wells Can ramp up quickly with success Colorado NYSE: KWK…
Montana Southern Alberta Basin Secure acreage position allows the play to come to Quicksilver 175,000 net acres in basin Cut Bank oil Glacier Toole production holds 100% of 119,000 net acres 300,000- acre AMI Bakken formation…
West Texas Wolfpack 75,000 net acres; 75% NRI Additional 50,000 net acres in Presidio County 2011 plan 1-2 recompletes 1 new drill NYSE: KWK www.qrinc.com
Production Forecast MMcfe/d Identified projects in Fort Worth Basin offer 600 low-risk, low-cost growth 510-520 500 425-435 130 MM 400 Maintenance 355 Capital 325 300 263 200 151 100 0 2007 2008 2009 2010 2011E 2012P (1) (1)…
Financially Sound High full-cycle margins Strong hedge position in 2011 and expanding hedges for 2012 and beyond Reducing debt levels Debt per reserve of .65/Mcfe 12/31/10 1 billion of liquidity 80% of borrowing base available…
Reducing Leverage /Mcfe Debt to Proved Reserves Debt to Proved Developed Reserves NYSE: KWK www.qrinc.com
Compelling Investment Opportunity High-quality resource base 68% proved developed 12 Tcfe of proven unbooked resource potential High full-cycle margins Cost-free option on four developing oil plays Significant current market…
Barclays Capital CEO Energy-Power Conference Toby Darden, Chairman New York, New York September 6-7, 2011 NYSE: KWK www.qrinc.com
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