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."
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.