Sept 24 Quicksilver Resources Inc struck
a deal with a unit of Royal Dutch Shell Plc to jointly
develop oil and gas properties in the Sand Wash Basin in
The companies will own 50 percent interest each in about
330,000 acres, with SWEPI LP, the Shell unit, operating a
majority of the properties.
Quicksilver, which will bring 210,000 net acres to the joint
venture, will be paid an undisclosed amount to compensate for
its larger share.
Quicksilver shares were up 6 percent at $4.36 in morning
trading on the New York Stock Exchange. They have lost nearly
half their value in the last year.
The natural gas producer, which has been actively pursuing
joint venture options to help fund drilling, said it had also
established an area of mutual interest with SWEPI covering more
than 850,000 acres in the basin.
The agreement gives the companies a right to participate
equally in any acquisition within the area of mutual interest,
Quicksilver said last month that it was in advanced talks on
two ventures. Chairman Toby Darden said the deal with SWEPI was
not part of those discussions.
Quicksilver has been hit by a decline in prices of natural
gas, which formed 80 percent of its production in the latest
Natural gas prices, which were as high as $14 per
million British thermal units (mmBtu) in 2005, are slightly
below $3 per mmBtu now.