Fort Worth-based Quicksilver Resources said today it agreed to team with SWEPI L.P., a Royal Dutch Shell subsidiary, to "jointly develop their oil and gas interests in the Sand Wash Basin in northwest Colorado." The partners will also establish more than 850,000 acres in the basin as an "area of mutual interest," an agreement that commonly gives each company an interest in additional leaseholdings. "SWEPI will be the operator of the majority of the lands subject to the agreement, although Quicksilver will continue to operate wells it drilled prior to the agreement and other designated lands," Quicksilver said in a news release. The parties each have a 50 percent working interest in about 330,000 acres, and the same split on new acquisitions in the AMI. "This alliance with Shell in the Sand Wash Basin is a validation of Quicksilver's efforts over the past two years to unlock significant oil reserves in the Niobrara shale formation," Quicksilver Chairman Tody Darben said in the release.
-- Jim Fuquay