Quicksilver Resources Inc. has closed the previously-announced Acquisition and Exploration Agreement with SWEPI LP, a subsidiary of Royal Dutch Shell plc, on December 28, 2012. Quicksilver now owns a 50% interest in approximately 320,000 net acres in the Sand Wash Basin in Northwest Colorado, which will be jointly developed with SWEPI.

The Agreement also established an Area of Mutual Interest covering in excess of 850,000 acres in the basin. SWEPI paid Quicksilver an equalization payment for 50% of the acreage contributed by Quicksilver in excess of the acreage that SWEPI contributed. Further terms of the transaction were not announced.

"We are pleased to have SWEPI as a partner in this important oil project. It is also a step toward improving Quicksilver's liquidity position," said Glenn Darden, Quicksilver's President and CEO. "The proceeds from the closing of the Agreement will be used to reduce the company's credit facility borrowings and to fund future project development."

Tags: Quicksilver Resources Inc.