Quicksilver Resources Spikes 5%; Inks Deal with Shell Subsidiary

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Quicksilver Resources Inc. ( KWK ) is up 5.1% at $4.32 after the company announced its agreement with SWEPI LP, a subsidiary of Royal Dutch Shell plc (RDS.A), to jointly develop their oil and gas interests in the Sand Wash Basin in Northwest Colorado and to establish an Area of Mutual Interest covering in excess of 850,000 acres in the basin.

Per the agreement, each company 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 KWK an equalization payment for 50% of the differential in acreage contributed by KWK in excess of the acreage that SWEPI contributes.

KWK trades in a 52-week range of $2.93 - $8.94. Shares have fallen 47% in the last 12 months. RDS.A trades in a 52-week range of $57.97 - $74.52. Shares have increased 16% in the last 12 months

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This article appears in: Investing , Commodities

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