Investors apparently are happy with Quicksilver Resources' $485 million deal announced Friday to sell 25 percent of its Barnett Shale assets to Tokyo Gas. The Fort Worth-based producer's shares (ticker: KWK) are up about 20 percent this morning on extremely heavy trading. (U.S. stock markets were closed for Good Friday, so Monday was the first trading day following the deal's disclosure.)
Quicksilver gets about two-thirds of its production from the Barnett. The $485 million gives TG a quarter of all Quicksilver's reserves in the field, and going forward Tokyo Gas and Quicksilver will split development costs on a 25/75 basis. Quicksilver estimated proved reserves in the field at 1.2 trillion cubic feet under Securities and Exchange Commission guidelines on its fourth-quarter report, but that used 2012 average futures price of $2.76 per 1,000 cubic feet.
-- Jim Fuquay