Quicksilver Resources Inc. completed its acquisition of CMSEnergy Corp.’s gas and crude oil exploration and productionproperties in Michigan, including the stock of Terra Energy Ltd.,as well as other smaller interests in Ohio, Kentucky, and Indiana.The deal was announced in January (see Daily GPI Jan. 20).

The sale includes 180,000 net leasehold acres producing 49,000Mcfe/d from the Antrim Shale, as well as from the Niagaran andPrairie du Chien formations. The transaction had an effective dateof Jan. 1, 2000.

The price was about $163 million, subject to certainpost-closing adjustments. Financing was through restructuringQuicksilver’s senior bank facility, the sale of $43 million insubordinated notes and the monetization of a portion of theaccompanying Section 29 tax credits.

“This acquisition has significantly strengthened our position inMichigan,” said Houston Kauffman, Quicksilver vice president ofacquisitions, divestments and trades. “We are now the largestindependent gas producer in the state, and this purchase willenhance our operating and marketing efficiencies. It has alsosignificantly increased our development drilling inventory. We aregoing to be very busy in Michigan for a long time.”

The deal is expected to be accretive to Quicksilver’s 2000 cashflow and net income. Proved producing reserves are now almost 70%of the Fort Worth, TX-based company’s reserve base, which is nowdoubled and estimated to be 610 Bcfe, Quicksilver said.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.