Quicksilver Resources Inc KWK

JV partner will likely be a foreign company

[glacierman]

Noel A. Parks - Ladenburg Thalmann & Co. Inc., Research Division

Just a few things. I guess, as you make progress on the Horn River Basin, JV talk, can you give me a sense of what are sort of like the maybe the #1 priority of the different buyers, whether it's supply, length of an agreement, how price-sensitive they are, I guess, connection with infrastructure transaction?

Glenn M. Darden - Chief Executive Officer, President, Director and Member of Equity Awards Committee

Ye. Noel, this is Glenn. I would say, as a general rule, we're seeing foreign buyers coming into the North American market to lower their cost of supply. So we saw that with Tokyo Gas. And obviously, they, after doing our Barnett deal, they -- shortly after that an announcement was made, they made an announcement of taking a certain amount of offtake from the Cove Point facility, Dominion's project in Maryland. So that was the way Tokyo Gas was looking at it coming -- getting to the upstream. And that's very similar to the players that we're seeing in Canada. So by getting upstream, they can lower their cost of supply. By looking at an integrated model, they can lower their overall cost of supply. So they are certainly -- it is supply. It's certainty of supply, but it's also cost of that supply. So those are probably the common denominators that we see. What we have seen over the last 12 months and the reason we believe we've seen more potential buyers interested in our project, is we've confirmed the quality of asset, both with our -- through our drilling and completion efforts and through third-party analysis. Actually, the Komie North decision allowed for more time to methodically develop the asset, so that was a benefit to us in the sales process, we believe. It had certainly been conveyed that way to us from some of the potential buyers. And then, of course, we have multiple transactions and comparables in the area that have endorsed the quality and the assets in Northern Canada region. So that's a little more than you asked for, Noel, but it's interesting to see the push to North America and Canada, in particular, we see by a lot of foreign players.