Asset Overview Horn River Basin Horseshoe Canyon CBM 130,000 net acres 313,000 net acres 105 Bcf of SEC reserves YE12 162 Bcf of SEC reserves YE12 10 Tcf resource potential 5 to 6-year potential inventory Sand Wash Basin -…
Asset Values Market weighs heavy discount on growth assets Value of Barnett Shale is Mkt. 1.9B based on Tokyo Cap Gas transaction, which is 80% of Quicksilvers EV EV = 2.45B at Mar-13 Debt Enterprise Value implies 0.37B…
Reserves 2012 reserves near 2011 levels at strip 3.7 Pricing 2012 SEC Reserves at the Feb. 6 13 Strip produces 3.6 Incremental Gas Reserves, but Negatively Impacts NGL Reserves as compared to 2011 SEC Reserves PV10 = 1.4B…
2013 Goals Closing the market value gap with these initiatives Monetize a portion of Barnett Shale assets Update 25% sale to Tokyo Gas to close 4/30 Continue to de-risk West Texas project; continue to advance Colorado project with…
Joint Venture Overview Colorado Closed Shell JV December 2012 Exploring subsequent JV partners Barnett Quicksilver announced a JV with Tokyo Gas on March 28th Horn River Ongoing process West Texas Continue drilling and…
Debt Refinance Plan Securing flexibility and addressing the debt tower Process underway to amend existing credit facility Objective is to secure flexibility by setting covenant levels to allow for the execution of the strategic plan…
BARNETT NYSE: KWK www.qrinc.com 9
Consistent, Repeatable & Predictable Well Performance Alliance Lake Arlington Denton 12,000 net acres 6,000 net acres 72.5% WI; 11% avg. royalty 100% WI; 26% avg. royalty EUR of 5 - 8 Bcf on laterals EUR of 4 - 7 Bcf on laterals…
Barnett Update 2012 Activity Drilled 22 gross wells and connected 31 gross wells Inventory of 25 drilled but uncompleted wells at YE2012 Expecting to drill and…
Tokyo Gas Deal On 3/28/13, Quicksilver executed the PSA to sell a 25% interest in its Barnett Shale oil and gas assets to Tokyo Gas Quicksilver remains operator TG buying an interest across the asset No hedges conveyed in the…
Partnership with Tokyo Gas Tokyo Gas will be an excellent partner in the Barnett Quicksilvers goal from the outset was to identify and secure a partner that recognizes the natural gas value chain TGs Challenge 2020 Vision of natural…
CANADA NYSE: KWK www.qrinc.com 14
Horn River Update Producing 88 MMcfd from 10 wells in early April 2013 Three of four legacy wells producing 20+ months currently 10 MMcfd; seven new wells from d-50 pad producing 78 MMcfd d-50 pad restricted by surface facilities and…
Horn River Update Status of Komie North Extension Construction of Quicksilvers treating facility and Komie North pipeline delayed until at least 2017 N.E.B. requires greater commercial support for Komie North Delay in commissioning…
SAND WASH NYSE: KWK www.qrinc.com 17
Sand Wash Agreement with Shell Quicksilver and Shell will jointly develop more than 320,000 net acres 50/50 sharing Shell will operate a majority of the acreage; Quicksilver retains operatorship on wells drilled (and surrounding…
Colorado Update 2012 activity Drilled 4 wells, completed 3 wells, and refracd two wells with treated slickwater Recent verticals IP averaging 100 Boed on shallow declines Completed vertical well in 4Q12 400 Boed (60% oil) IP and…
WEST TEXAS NYSE: KWK www.qrinc.com 20
West Texas Wolfpack T E X A S COMSTOCK PIONEER CWI WHITING CONOCO -PHILLIPS EL PASO BHP BILLITON FOREST OIL EOG APPROACH CONCHO SANTA RITA RESOURCES BALMORHEA EXXON MOBILE/XTO LEON VALLEY 126,000 net acres…
West Texas Update Producing oil from two wells Vande Ranch (Upton County): 2,400 lateral targeting the Wolfcamp formation drilled in 4Q12 still recovering load water Price Ranch 1 (Pecos County): 1,500 lateral drilled in 3Q12…
FINANCIAL NYSE: KWK www.qrinc.com 23
Strong Derivative Position Underpins capital program through stabilization and 250 predictability of cash flow 6.00 5.10 5.23 5.08 5.00 Hedge Volume (MMcfd) 200 4.00 150 3.00 100 2.00 50 1.00 0 0.00 2013 2014 2015…
Compelling Investment Opportunity Business Drivers Focus on core areas of repeatable, low-risk development Proven Business Strategy Pursue disciplined organic growth opportunities Attain and maintain a prudent capital structure to…
APPENDIX All amounts presented are before consideration of the Barnett minority working interest sale, unless otherwise noted. NYSE: KWK www.qrinc.com 26
Proved Reserves Summary SEC Pricing Net proved reserves as of December 31, 2012 Oil Gas NGL Total PV-10 (M) Category (MBbls) (MMcf) (MBbls) (Bcfe) SEC Price PD 2,416 992,144 47,294 1,290 624,987 PUD 113 122,686 8,890 177 -15,700…
Proved Reserves Summary February 28, 2013 Strip Net proved reserves as of December 31, 2012 Oil Gas NGL Total PV-10 (M) Category (MBbls) (MMcf) (MBbls) (Bcfe) Feb. 28, 2013 Price PD 2,326 1,375,572 51,479 1,698 1,529,047 PUD 84…
Proved Reserves Summary February 28, 2013 Strip Net proved reserves as of December 31, 2012 Oil Gas NGL Total PV-10 (M) Region (MBbls) (MMcf) (MBbls) (Bcfe) Feb. 28, 2013 Price Barnett 160 1,300,593 58,282 1,651 1,276,221 Other…
Barnett Type Wells 10,000 Alliance 10,000 Cowtown Length Gas Price NGL Price Well Cost NPV-10 ROR Q-30d EUR Net Total Length Gas Price NGL Price Well Cost NPV-10 ROR Q-30d EUR Net Total (ft) (/mmbtu) (/bbl) (MM) (MM) (%) (mmcf/d)…
High-BTU Production Enhances Margins Southern acreage averages 1,250 BTU gas at wellhead; yields 122 barrels of NGLs per 1 MMcf 1.000 Mcf Wellhead production Nat. Gas NGLs Production by product .702 Mcf .122 Bbl Price 4.00 /Mcf…
HRB Type Curves: First Four Wells NYSE: KWK www.qrinc.com 33
Horn River Treating Commitments Prior Commitments Existing Commitments 250 250 Commitment on 4/1/13 is 75 MMcfd 200 200 (Ft. Nelson North original COD was May12 45 MMcfd) 150 150 MMcfd MMcfd 100 100 50 50 0 0…
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