Shell and Quicksilver Resources have entered into an agreement with Southwestern Energy to sell all of their jointly owned holdings in the Sand Wash Basin portion of the Niobrara shale play for $180 million.
The acquired acreage covers 312,000 net acres in Routt and Moffat counties in north-west Colorado. The transaction marks Southwestern's entry into the liquids-rich Niobrara play.
Steve Muller, President and CEO of Southwestern, commented: "This acreage position covers a substantial area in the Sand Wash Basin - over 50 miles across and over 20 miles wide - and provides the opportunity for us to leverage our operational strengths into a new large, scalable project… Upon closing, we expect that we could begin drilling operations as early as June of this year."
Quicksilver CEO Glenn Darden commented: "This sale enables us to focus our development efforts on the Barnett and Canadian projects as well as our previously announced joint ventures in West Texas, and provides the opportunity to enhance company liquidity."
The transaction is effective from 1-Jan-2014 and is expected to close on 1-May-2014.
In January 2013, Quicksilver Resources and Shell closed the agreement to form a JV in Sand Wash Basin, Colorado.
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