Oklahoma City-based OGE Energy Corp. said Friday that its subsidiary Enogex Exploration Corp. has agreed to sell its natural gas production assets in Michigan to Quicksilver Resources Inc. of Fort Worth, TX for approximately $32 million.

OGE said the properties, located in the Antrim shale formation, currently produce approximately 8.5 MMcf/d. Quicksilver is the largest natural gas producer in Michigan and the Antrim shale trend. The companies said the sale is expected to close Dec. 2.

“This transaction is consistent with our strategy of capitalizing on opportunities in our core areas,” said Glenn Darden, CEO of Quicksilver Resources. “This is a very efficient acquisition which is accretive to earnings and cash flow for the company. Because we operate most of the properties we will not be adding personnel. In addition, it increases our net inventory of development drilling locations.”

Quicksilver will be the operator of more than 90% of the natural gas reserves acquired, which are 80% proved developed producing. Quicksilver said it will finance the acquisition with available cash and existing credit facilities.

“This asset sale is in keeping with our commitment to exit the exploration and production business to focus on our core operations in the midstream gas sector,” said Pete Delaney, executive vice president of OGE Energy Corp. “It also is consistent with our commitment to pay down debt.”

OGE’s Enogex subsidiary is a natural gas pipeline and energy marketing business with principal operations in Oklahoma, Arkansas and Texas. OGE Energy also is the parent company of Oklahoma Gas and Electric Co., a regulated electric utility serving more than 700,000 customers in a service territory spanning 30,000 square miles in Oklahoma and western Arkansas.

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