2010-11-18-2010-11-08-2010-11-08

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
22MM
Description

Bought interest in 47,000 gross acres in the Joffre area of the Alberta Horseshoe Canyon, gaining 5 MMcf/d, 23 Bcf proved.

Quicksilver Resources Inc., Fort Worth, Texas, (NYSE: KWK) has acquired additional acreage in Alberta from an undisclosed buyer for C$22 million.

The assets include interest in 47,000 gross (21,700 net) acres in the Joffre area of the Horseshoe Canyon where the company already operates. Net production is approximately 5 million cubic feet of natural gas per day. Proved reserves are 23 billion cubic feet.

Jefferies & Co. analyst Subash Chandra says the deal price reaffirms falling values for gas assets. The Valuation metric of $4,400 per flowing thousand cubic feet equivalent is in-line with the recent shallow Canadian gas sale of EOG Resources Inc., Houston (NYSE: EOG) at $3,800, but well below the Apache Corp., Houston, (NYSE: APA) deal in Western Canadian done at $11,600.