By OGJ editors
HOUSTON, Oct. 18 -- Two Fort Worth independent operators reached agreement with the city council of Arlington, Tex., on lease terms covering acreage under Lake Arlington and other tracts in the vicinity.
The agreement with Quicksilver Resources Inc. and private Marshall R. Young Oil Co. call for the city to receive a 27.7% royalty and $11,777/acre bonus payment.
The lease covers 1,442.6 net acres of city-owned minerals under Lake Arlington, which overlies 2,250 surface acres in Tarrant County between Fort Worth and Arlington.
When added to acreage the companies previously acquired, Quicksilver and Young will hold 4,800 net acres at 75% average net revenue interest and $5,400/acre average bonus. The acreage could provide as many as 75 development locations that Quicksilver said enhance its plans "for increasing natural gas production and reserves from the Barnett shale in the Fort Worth basin."
Quicksilver will operate the lease and own 75% working interest. The city adopted a gas drilling and production ordinance on Dec. 20, 2005.