Quicksilver Resources Inc has agreed to acquire assets in
Texas's Barnett Shale formation for US$1.31bn in cash and
stock. The area, located near Fort Worth is thought to be the
US’s largest onshore natural gas field.
Quicksilver, said the deal would increase its production-growth
profile and inventory of low-risk, high-return development
projects while keeping costs low.
Under the agreement with private parties that include Chief
Resources LLC, Hillwood Oil & Gas LP and Collins & Young LLC,
Quicksilver will pay US$1bn in cash and US$307m in its stock
for the assets.
Quicksilver said its production in the second quarter averaged
between 233-235mcbfpd of natural-gas equivalents. The Barnett
Shale properties being acquired produce 45mcbfpd of natural
gas, thereby potentially boosting the company’s production by
19.2 per cent.
Reported by The Wall Street Journal
