Quicksilver Resources (NYSE:KWK) said Tuesday its proved reserves grew by more than 20% to 2.9 trillion cubic feet of natural gas equivalents (Tcfe) in 2010.
Reserve growth in fiscal 2010 was driven by a 22% increase in reserves at the company's Fort Worth Basin Barnett Shale property. The property had more than 2.6 Tcfe at the end of 2010, about 90% of the company's total reserves.
Sixty-eight percent of total reserves were proved developed reserves. By product, the reserves were comprised 76% from natural gas, 23% from natural gas liquids and 1% from crude oil.
The reserves also included about 16 billion cubic feet of natural gas equivalents from the company's 130,000 net acre property in the Horn River Basin of northeast British Columbia.
For 2010, average production was about 355 million cubic feet of natural gas equivalents per day, an increase of 9% from the prior year. Total production for 2010 came to 130 billion cubic feet of natural gas equivalents.
Contrary to the positive news, the company also said it will record a $19 million non-cash impairment charge related primarily to its activities in the Horn River Basin.
Quicksilver said it will release its fourth-quarter financial results on February 28.