Quicksilver Resources Inc., Fort Worth, Tex., said Tuesday it's agreed to purchase from Dominion Reserves-Indiana Inc.�a subsidiary of Houston-based Dominion Exploration & Production Inc.�all of Dominion's Corydon project natural gas assets located in Harrison County, Ind., and Meade County, Ky.
The assets include 22 producing gas wells and corresponding gathering systems, a 50% interest in more than 20,000 undeveloped leasehold acres, and 80% of the GTG Pipeline�a 12-in. gas transmission pipeline running 8 miles from southern Indiana to northern Kentucky.
Dominion owns a 95% undivided interest in the producing properties, with the remainder of the ownership in the Corydon project belonging to Mercury Exploration Co., the operator, which is an entity controlled by Quicksilver's primary shareholders.
Quicksilver will take over operatorship of the project from Mercury and expects to close on the purchase of Mercury's interest during the next few weeks.
The Corydon project presently produces 2 MMcfd of gas from the New Albany shale formation. Quicksilver said it believes 50 additional locations exist on the property. It plans to drill 5 wells before the end of this year.
