Quicksilver Resources, a natural gas producer is selling a 25-percent stake in its Barnett Shale oil and gas assets to TG Barnett Resources LP (TGBR), a subsidiary of Tokyo Gas Co. for $485 million.
Quicksilver will remain as operator of the assets which are located in Texas. The company holds about 130,000 net acres within the Barnett Shale formation in the Fort Worth basin of north Texas. The assets currently produce about 275 million cubic feet per day of shale gas and natural gas liquids marketed in the United States.
The effective date of the transaction is Sept. 1, 2012 and closing is expected to occur April 30, which is subject to customary closing conditions. The company said it will use the proceeds to lower debt.
"We are very pleased to have Tokyo Gas as a partner to develop the full potential of our Barnett Shale asset base," said Glenn Darden, Quicksilver's president and CEO, in a released statement. "We look forward to a successful long-term relationship, which will benefit both of our companies."
This transaction is the first time for Tokyo Gas to participate in the shale gas development in the United States. TGBR's share of gas production will be marketed in the United States, and is forecasted to be some 0.35 to 0.5 million tons per annum in terms of LNG volume.
Tokyo Gas said it will "continue to work intensively for participation in the overseas business with a view to diversification and expansion of its upstream business as well as establishment of LNG value chain," in a released statement.