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Quicksilver Resources (NYSE:KWK) recently tested its first completed well in the Horn River Basin in Northeast British Columbia. The well had an initial production rate of 13 million cubic feet per day and averaged 10 million cubic feet per day during the first month of production.

The D-50A well was drilled into the Muskwa shale formation with nearly 3,500 feet of lateral and 10 stages of fracture stimulation. A permanent sales line connects the well to the Spectra pipeline in Fort Nelson.

Initial results have raised hopes for a part of Quicksilver's Horn River Basin assets, which cover 127,000 net contiguous acres. Management sees potential for multiple trillion cubic feet of recoverable natural gas resources in this acreage position.

Initial drilling results have confirmed more than 500 feet of net shale thickness in the Muskwa and Klua/Evie shale formations at a vertical depth of 9,000 feet. Quicksilver has drilled a second well into the lower Klua/Evie shale with nearly 4,300 feet of lateral and plans to start completion activities later this year.

Investors cheered the success of Horn River test. Quicksilver shares closed at $14.43 on Tuesday, up 10% from previous day’s close. We maintain our Outperform recommendation on the stock.

Source: Quicksilver’s Horn River Test Positive