Quicksilver Resources Inc., Fort Worth,
Texas, (NYSE: KWK) has closed its
acquisition of producing, leasehold, royalty
and midstream assets in the Barnett
shale in North Texas from privately held,
Texas-based Chief Resources LLC,
Hillwood Oil & Gas LP and Collins and
Young LLC and other vendors for $1 billion
in cash and approximately $270 million
in stock for a total deal valued of some
$1.27 billion.
The deal is valued at $3.73 per thousand
cubic feet of proved reserves, $29,044 per
thousand cubic feet per day flowing, and
$100,539 per acre, according to Merrill
Lynch Petrie Divestiture Advisors managing
director Sylvia Barnes.
The assets include 13,000 net acres in
Tarrant and Denton counties. Net production
is 50 million cubic feet of gas per day.
Proved reserves are 350 billion cubic feet
(40% proved developed) and proved and
probable reserves of 1 trillion cubic feet.
Quicksilver funded the cash portion of
the deal with a $700-million 30-month second-
lien term loan facility and its credit
facility. Merrill Lynch was advisor to the
sellers.