Quicksilver Resources intends to spend approximately $370 million in 2012 for drilling and completion and related oil and gas activities.

This projected spending includes approximately $302 million for drilling and completion activities, $46 million for gathering and $22 million for leasehold. On a project basis, approximately $108 million is anticipated to be spent in the Fort Worth Basin, predominately in the liquids-rich southern acreage, $180 million in Canada and $82 million in emerging oil plays in the Sandwash Basin in Colorado and the Permian/Delaware basins in West Texas. These figures do not include approximately $40 million of overhead and interest expense that may be ordinarily capitalized, and corporate and administrative capital.

"Quicksilver's 2012 operating budget is primarily directed to advance our new projects to the development stage, two of which are dedicated to oil," said Glenn Darden, Chief Executive Officer. "Much like the last two years, the company plans to match the operating budget to cash flows supplemented by anticipated sales of certain assets or joint venture partner interests."

In the Fort Worth Basin, the company expects to operate two rigs in the first quarter, with a scale down to one rig for the remainder of the year, resulting in the drilling of approximately 25 gross (20 net) wells. The company also anticipates completing approximately 36 gross (31 net) additional wells from its inventory of drilled but uncompleted wells. Drilling and completion activity in the Fort Worth Basin will be concentrated in the high-margin, liquids-rich southern acreage. Drilling activity in the Horn River Basin is expected at a level to meet land requirements and commitments under transportation and processing agreements to third parties and to the newly-formed partnership with KKR.

In the Sandwash Basin, the company plans to drill and complete up to seven horizontal wells to confirm encouraging results from its initial wells in the Niobrara and Lower Mancos formations. One rig is expected to be deployed to West Texas in the second quarter to commence a drilling program in the Wolfpack prospect.

Production volumes for 2012 are projected to be essentially flat to 2011. Average daily production volumes are expected to consist of approximately 80% natural gas and 20% natural gas liquids and crude oil. For 2012, the company has approximately 56% of its equivalent production hedged at a price of $6.16 per Mcfe.

As previously disclosed, the company is pursuing strategic joint ventures in 2012 for its Horn River Basin and West Texas projects. Earlier this month, the company retained advisors and initiated a formal process to bring a strategic partner to each project.

Tags: Quicksilver Resources Inc.