Unocal Selling Michigan Assets to Quicksilver
Unocal Corp.'s Spirit Energy 76 agreed to sell substantially all
of its oil and gas assets in Michigan to Quicksilver Resources Inc.
for $27 million cash and about $3 million in unregistered common
stock of Quicksilver.
The sale includes about 20,000 net leasehold acres producing
about 13 MMcfe/d of gas (net). Estimated reserves were not
disclosed. The acquisition is expected to be accretive to
Quicksilver's 1999 revenues, EBITDA, and net income, and should
increase total production by 25% to 68 MMcfe/d. The company had
1998 net income of $4.9 million and EBITDA of $26.5 million.
Spirit Energy said the sale is consistent with an increased
focus on primary exploration and production activities in Texas,
the Gulf Coast region and the Gulf of Mexico. The transaction is
expected to close during the second quarter, with an effective date
of Jan. 1.
In September MSR Exploration announced an agreement to merge
with Quicksilver Resources to create a combined company - named
Quicksilver Resources - five times larger than the former MSR in
terms of total assets.
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