Quicksilver Resources Announces Sand Wash Basin Joint Development and AMI Agreement

Mon Sep 24, 2012 7:30am EDT

* Reuters is not responsible for the content in this press release.

  FORT WORTH, TX, Sep 24 (Marketwire) -- 
Quicksilver Resources Inc. (NYSE: KWK) announces the execution of an
agreement with SWEPI LP, a subsidiary of Royal Dutch Shell plc (NYSE:
RDS.A), to jointly develop their oil and gas interests in the Sand Wash
Basin in Northwest Colorado and to establish an Area of Mutual Interest
("AMI") covering in excess of 850,000 acres in the basin.

    The parties will each assign to the other a 50% working interest in the
majority of their acreage in the Sand Wash Basin so that each party will
own a 50% interest in approximately 330,000 acres and have the right to a
50% interest in any acquisition within the AMI. In addition, the
agreement provides that SWEPI will pay Quicksilver an equalization
payment for 50% of the differential in acreage contributed by Quicksilver
in excess of the acreage that SWEPI contributes.

    "This alliance with Shell in the Sand Wash Basin is a validation of
Quicksilver's efforts over the past two years to unlock significant oil
reserves in the Niobrara shale formation. We will now combine our
resources to push a much larger project forward," said Quicksilver
Chairman Toby Darden. "This agreement is in addition to -- and
independent of -- the two joint ventures we referred to on our recent
earnings conference call."

    SWEPI will be the operator of the majority of the lands subject to the
agreement, although Quicksilver will continue to operate wells it drilled
prior to the agreement and other designated lands. 

    Closing is expected to occur before year-end 2012 and is subject to
customary due diligence and other closing conditions.

    In unrelated news, regarding Quicksilver's Horn River project in British
Columbia, on September 7, 2012, Quicksilver Resources and NOVA Gas
Transmission Ltd. ("NGTL"), a subsidiary of TransCanada Pipelines
Limited, entered into an agreement to delay the targeted in-service date
of the Komie North pipeline and meter station facilities from May 1, 2014
to August 1, 2015, and revise NGTL's spend profile and Quicksilver's
obligations to provide related financial assurances in the form of
letters of credit. As a direct result, NGTL released C$39 million of
letters of credit that were previously posted to the project as of July
1, 2012. Quicksilver's next scheduled letter-of-credit placement is April
1, 2014.

    About Quicksilver Resources

    Fort Worth, Texas-based Quicksilver Resources is an independent oil and
gas company engaged in the exploration, development and acquisition of
oil and gas, primarily from unconventional reservoirs including gas from
shales and coal beds in North America. The company has U.S. offices in
Fort Worth, Texas; Glen Rose, Texas; Craig, Colorado; Steamboat Springs,
Colorado and Cut Bank, Montana. Quicksilver's Canadian subsidiary,
Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta.
For more information about Quicksilver Resources, visit www.qrinc.com.

    Forward-Looking Statements

    Certain statements contained in this press release and other materials we
file with the SEC, or in other written or oral statements made or to be
made by us, other than statements of historical fact, are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements give our
current expectations or forecasts of future events. Words such as "may,"
"assume," "forecast," "position," "predict," "strategy," "expect,"
"intend," "plan," "estimate," "anticipate," "believe," "project,"
"budget," "potential," or "continue," and similar expressions are used to
identify forward-looking statements. They can be affected by assumptions
used or by known or unknown risks or uncertainties. Consequently, no
forward-looking statements can be guaranteed. Actual results may vary
materially. You are cautioned not to place undue reliance on any
forward-looking statements. You should also understand that it is not
possible to predict or identify all such factors and should not consider
the following list to be a complete statement of all potential risks and
uncertainties. Factors that could cause our actual results to differ
materially from the results contemplated by such forward-looking
statements include: changes in general economic conditions; fluctuations
in natural gas, NGL and oil prices; failure or delays in achieving
expected production from exploration and development projects;
uncertainties inherent in estimates of natural gas, NGL and oil reserves
and predicting natural gas, NGL and oil reservoir performance; effects of
hedging natural gas, NGL and oil prices; fluctuations in the value of
certain of our assets and liabilities; competitive conditions in our
industry; actions taken or non-performance by third parties, including
suppliers, contractors, operators, processors, transporters, customers
and counterparties; changes in the availability and cost of capital;
delays in obtaining oilfield equipment and increases in drilling and
other service costs; delays in construction of transportation pipelines
and gathering, processing and treating facilities; operating hazards,
natural disasters, weather-related delays, casualty losses and other
matters beyond our control; the effects of existing and future laws and
governmental regulations including environmental and climate change
requirements; the effects of existing or future litigation; failure to or
delays in completing Quicksilver's proposed initial public offering of
common units representing limited partner interests in a master limited
partnership holding portions of our Barnett Shale assets; and additional
factors described elsewhere in this press release.

    This list of factors is not exhaustive, and new factors may emerge or
changes to these factors may occur that would impact our business.
Additional information regarding these and other factors may be contained
in our filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. All
such risk factors are difficult to predict, and are subject to material
uncertainties that may affect actual results and may be beyond our
control. The forward-looking statements included in this press release
are made only as of the date of this press release, and we undertake no
obligation to update any of these forward-looking statements to reflect
subsequent events or circumstances except to the extent required by
applicable law.

    All forward-looking statements are expressly qualified in their entirety
by the foregoing cautionary statements. 

    KWK 12-17

    

Investor/Media Contacts
Quicksilver Resources
David Erdman
(817) 665-4023 

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