Quicksilver Resources Inc. has executed an agreement with SWEPI LP, a subsidiary of Royal Dutch Shell, to jointly develop their oil and gas interests in the Sand Wash Basin in Northwest Colorado and to establish an Area of Mutual Interest (AMI) covering in excess of 850,000 acres in the basin.

The parties will each assign to the other a 50% working interest in the majority of their acreage in the Sand Wash Basin so that each party will own a 50% interest in approximately 330,000 acres and have the right to a 50% interest in any acquisition within the AMI. In addition, the agreement provides that SWEPI will pay Quicksilver an equalization payment for 50% of the differential in acreage contributed by Quicksilver in excess of the acreage that SWEPI contributes.

Tags: Quicksilver Resources Inc.