Quicksilver Resources Inc. (OTC Pink: KWKAQ) and its US subsidiaries have completed a bankruptcy court-approved auction for their US oil and gas assets located primarily in the Barnett shale play in the Fort Worth Basin of North Texas, as well as assets in the Delaware Basin in West Texas, which are concentrated in Pecos County, Texas, and to a lesser extent Crockett and Upton counties, Texas.
The completion of the auction follows a months-long marketing process of all of Quicksilver's and its US subsidiaries' US assets that began in September 2015. At the auction, which was held Jan. 20–21, Quicksilver and its US subsidiaries declared an all-cash bid from BlueStone Natural Resources II LLC in the amount of $245 million the highest or otherwise best bid for the oil and gas assets, and the successful bid.
Quicksilver and BlueStone executed the asset purchase agreement for the sale of the oil and gas assets on Jan. 22. Quicksilver and its US subsidiaries will seek final approval for the sale from the US Bankruptcy Court for the District of Delaware on Jan. 27. Quicksilver and its US subsidiaries intend to continue normal operations pending the consummation of the sale.
Quicksilver and its US subsidiaries filed voluntary petitions under Chapter 11 of Title 11 of the US Code on March 17, 2015, in the US Bankruptcy Court for the District of Delaware. The Chapter 11 cases are being jointly administered under the Case No. 15-10585. Quicksilver's Canadian subsidiaries were not included in the Chapter 11 filing and are not subject to the requirements of the Bankruptcy Code. The assets of Quicksilver's Canadian subsidiaries are not included in this sale, and the sale process for those assets remains ongoing.
The company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the US, and Bennett Jones LLP in Canada. Houlihan Lokey Capital Inc. is serving as financial advisor.
Fort Worth, Texas-based Quicksilver is a publicly traded independent oil and gas company engaged in the exploration, development, and acquisition of oil and gas, primarily from unconventional reservoirs including shales and coal beds in North America. Quicksilver's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta.