Tulsa-based private equity firm BlueStone Natural Resources II has reportedly purchased the U.S. assets of bankruptcy-immersed Quicksilver Resources Inc. for $245 million, according to a company announcement Saturday. An auction was held last Wednesday and Thursday (see Shale Daily, Jan. 20).
Quicksilver and its U.S. subsidiaries completed the bankruptcy court-approved auction for what the companies described as their U.S. oil and natural gas assets located primarily in the Barnett Shale in the Fort Worth Basin of North Texas, as well as assets in the Delaware Basin in West Texas that are concentrated in Pecos County, TX, and to a lesser extent Crockett and Upton Counties, TX.
The BlueStone bid at the auction was an all-cash offer, which Quicksilver identified as the "highest and best" offer for the assets, which are part of the company's Chapter 11 voluntary bankruptcy filing last March (see Shale Daily, Feb. 18, 2015). The Fort Worth, TX-based energy company's Canadian assets, which were not part of the bankruptcy, are to be sold separately.
In September, Quicksilver announced the start of its marketing/sales effort for "all or a portion" of its North American assets at a time when a third forbearance agreement was reached by the company's unit in Canada, Quicksilver Resources Canada Inc. The auction was originally scheduled for December, but potential buyers needed more time to evaluate the assets.
"We believe that the marketing and sales process was thorough and resulted in a successful outcome," said Quicksilver CEO Glenn Darden. "This sale maximizes value for the benefit of our creditors in the face of difficult market conditions."
Quicksilver and BlueStone executed the asset purchase agreement for the sale of the oil and gas assets last Friday. Quicksilver and its U.S. subsidiaries will seek final approval for the sale from the U.S. Bankruptcy Court for the District of Delaware on Wednesday this week, and Quicksilver indicated that through its subsidiaries it intends to continue normal operations pending the completion of the sale.
"The sale of the assets of Quicksilver's Canadian subsidiaries remain ongoing," a spokesperson for Quicksilver said.