Unocal Corp.’s Spirit Energy 76 agreed to sell substantially allof its oil and gas assets in Michigan to Quicksilver Resources Inc.for $27 million cash and about $3 million in unregistered commonstock of Quicksilver.

The sale includes about 20,000 net leasehold acres producingabout 13 MMcfe/d of gas (net). Estimated reserves were notdisclosed. The acquisition is expected to be accretive toQuicksilver’s 1999 revenues, EBITDA, and net income, and shouldincrease total production by 25% to 68 MMcfe/d. The company had1998 net income of $4.9 million and EBITDA of $26.5 million.

Spirit Energy said the sale is consistent with an increasedfocus on primary exploration and production activities in Texas,the Gulf Coast region and the Gulf of Mexico. The transaction isexpected to close during the second quarter, with an effective dateof Jan. 1.

In September MSR Exploration announced an agreement to mergewith Quicksilver Resources to create a combined company – namedQuicksilver Resources – five times larger than the former MSR interms of total assets.

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