FORT WORTH, TX -- (Marketwire) -- 06/19/09 -- Quicksilver Resources Inc. (NYSE: KWK) announced today that it has completed the sale of 27.5% of Quicksilver's Alliance leasehold interests to Eni (NYSE: E). Quicksilver intends to use net proceeds from the transaction of approximately $280 million to repay a portion of its existing indebtedness under its second lien term loan due 2013.
Quicksilver's existing Alliance natural gas leasehold covers approximately 13,000 net acres in Denton and Tarrant counties, Texas. The two companies have formed a strategic alliance for acquisition, development and exploitation of unconventional natural gas resources in an area covering approximately 270,000 acres surrounding Quicksilver's existing Alliance leasehold. The transaction does not include Quicksilver's midstream gathering infrastructure or any of its existing leasehold beyond the Alliance properties.
Merrill Lynch & Co. acted as Quicksilver's financial advisor in connection with the transaction.
About Quicksilver Resources
Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional natural gas reserves, including coalbed methane, shale gas, and tight sands gas in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas and Cut Bank, Montana. Quicksilver's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta.
The statements in this press release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual activities could differ materially from those contained in this release because of a variety of factors disclosed in Quicksilver Resources' filings with the Securities and Exchange Commission. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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