By OGJ editors
HOUSTON, Nov. 18 -- Fort Worth-based Quicksilver Resources Inc. signed an agreement Friday to buy the Michigan natural gas assets of Enogex Exploration Corp., Oklahoma City, for $32 million.
Purchase of the properties, which currently are producing 8.5 MMcfd from the Antrim shale formation, will make Quicksilver the largest natural gas producer in Michigan and the Antrim shale trend, the company said.
Quicksilver's deal, which is expected to close Dec. 2, is subject to closing adjustments.
Quicksilver will serve as operator of more than 90% of the reserves acquired, it said. The assets contain 80% proved developed and producing properties. The company will finance the acquisition with available cash and existing credit facilities.
The Antrim shale is a thick blanket formation generally found at 500-2,200 ft in depth. Much of this shale lies in northern Michigan. Natural gas in the Antrim is developed and produced using "unconventional methodology," similar to that used in developing and producing coalbed methane, Quicksilver said. The company currently holds interest in 2,700 Antrim wells and entered the play in 1991.