By OGJ editors
HOUSTON, July 8 -- Quicksilver Resources Inc. entered into purchase and sale agreements with various private parties to acquire a number of Barnett shale assets for $1.3 billion.
Sellers include Chief Resources LLC, Hillwood Oil & Gas LP, and Collins & Young LLC. Quicksilver is acquiring production, leaseholds, royalties, and midstream assets in Tarrant and Denton counties of Texas.
The properties have net production of 45 MMcfd of gas. Quicksilver estimates that these properties hold 350 bcf of proved gas reserves, of which 40% are proved developed.
Quicksilver is paying $1 billion in cash and $307 million in common stock. The acquisitions are scheduled to close in August.
Upon closing, Quicksilver estimates that its total average 2008 production volume will increase to 275 MMcfd of gas equivalent, an 8% increase from earlier estimates.