Quicksilver agrees to joint venture with Shell unit in Colorado
BY ANGEL GONZALEZ
HOUSTON--Quicksilver Resources Inc. said that it agreed to a joint venture with a unit of Royal Dutch Shell in Colorado' s Sand Wash basin.
According to the agreement, Shell unit SWEPI LP and Quicksilver will each own 50% of 330,000 acres in the emerging oil and gas play. Quicksilver will receive an undisclosed payment for the acreage it contributes to the joint venture in excess of Shell' s own contribution.
The move comes as international oil giants deepen their involvement in North American onshore oil fields, which have been revitalized by hydraulic fracturing techniques. Shell earlier this month bought acreage in West Texas from Chesapeake Energy Corp., and Exxon Mobil Corp., the world' s largest publicly-traded oil company, last week agreed to purchase land in North Dakota' s Bakken Shale from Denbury Resources Inc.
The deal "should be perceived positively" by Quicksilver investors, said analysts with Simmons & Co. The company has been more affected than most by low natural gas prices, and has said that it intends to execute large-scale joint ventures or asset sales in its Permian and Sand Wash basin positions in order to get cash to boost its activity, the analysts said.
Dow Jones Newswires