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Quicksilver Buys Unocal MI Properties

Quicksilver Buys Unocal MI Properties

Quicksilver Resources Inc. of Fort Worth, TX, closed on the acquisition of substantially all of Unocal Corp.'s Spirit Energy 76 unit's gas and oil assets in Michigan. Total consideration was $27 million in cash and 404,381 shares of Quicksilver common stock. The transaction is effective January 1, 1999.

The properties include ownership in the Garfield Unit and the Beaver Creek Richfield Unit. Quicksilver's working interest ownership in Garfield will increase to 99% from 54%. The sale includes about 20,000 net leasehold acres producing about 13,000 Mcfe/d. Estimated reserves were not disclosed.

The stock component of the purchase was placed in escrow and will be distributed over a three-year period. The number of shares to be transferred will be subject to downward adjustment in correlation to certain costs, expenses, and liabilities incurred during the period.

Houston Kauffman, Quicksilver vice president of acquisitions, divestments and trades, said, "These properties fit perfectly with our Michigan operations, give us greater ownership in fields we already control, and increase our total production substantially. This adds additional Prairie du Chien production, with its higher cash flow, to our long-lived Antrim shale gas."

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