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Quicksilver Resources Agreement Approved

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The U.S. Bankruptcy Court approved, with revisions, Quicksilver Resources’ (QRI) motion to enter into an amended joint exploration agreement (JEA) with Eni Petroleum US.

As previously reported, “Eni has agreed to pay 100% of the cost of drilling, completing and equipping wells on the assets up to a total of $52.0 million, thereby earning a 50% interest in the Debtors’ acreage. The material terms of the 2015 Amendment are summarized as follows: Eni’s and QRI’s interests in New Wells drilled pursuant to the JEA will be approximately 64.5% and 35.5%, respectively; QRI will be deemed to be a non-consenting party for approximately 14.5% of the interest (the ‘Non-Consent Interest’) in any New Well and any production there from.”

Documents filed with the Court continue, “In sum, the Debtors will participate in each New Well drilled pursuant to the JEA on a reduced basis, thus allowing them to participate in the New Wells at an approximate aggregate reduced cost of $11.0 million, while retaining the option to revert to an equal participation basis should the Debtors determine it is economically beneficial to do so.” Read more bankruptcy news.