Quicksilver Resources Inc.
NYSE : KWK

Quicksilver Resources Inc.

October 18, 2006 08:50 ET

Quicksilver Resources Inc. and Marshall R. Young Oil Co. Announce Approval by Arlington's City Council for Mineral Lease Under Lake Arlington

FORT WORTH, TX--(CCNMatthews - October 18, 2006) - Quicksilver Resources Inc. (NYSE: KWK) and Marshall R. Young Oil Co. are pleased to announce that the Arlington City Council approved terms for an oil and gas lease agreement covering acreage under Lake Arlington, and other tracts in the vicinity. Quicksilver Resources will operate the lease and own an undivided 75 percent working interest.

Quicksilver Resources Inc. and Marshall R. Young Oil Co. are looking forward to working with the City of Arlington in developing the minerals owned by the City. Under the terms of the lease agreement, the City of Arlington will receive a 27.7 percent royalty and a lease bonus payment of $11,777 per net acre. The lease covers 1,442.60 net acres under Lake Arlington and other tracts, and when added to acreage previously acquired in the area, Quicksilver and Young will have under lease approximately 4,800 net acres in the Lake Arlington Project. This project area could provide up to 75 development locations. Coupled with the earlier leases taken, the average net revenue interest for this project is 75%, and its average cost per net acre is $5,400.00.

"We are pleased to be working with Marshall R. Young Oil Company on this important project. This tract enhances Quicksilver's ongoing development plans for increasing natural gas production and reserves from the Barnett Shale in the Fort Worth Basin," said Toby Darden, Chairman of the Board of Quicksilver Resources.

About Quicksilver

Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude oil production company engaged in the development and production of unconventional natural gas reserves, including coal bed methane, shale gas, and tight sands gas. It has U.S. offices in Fort Worth, Texas; Granbury, Texas; Gaylord, Michigan; Corydon, Indiana and Cut Bank, Montana. Quicksilver also has a Canadian subsidiary, Quicksilver Resources Canada Inc., located in Calgary, Alberta. For more information about Quicksilver Resources, visit www.qrinc.com.


Contact Information

  • INVESTOR RELATIONS:
    Quicksilver Resources Inc.
    Diane Weaver
    (817) 665-4834