KWK’s Borrowing Base Approved

Quicksilver Resources Inc. (KWK - Analyst Report) recently announced that its bank group has confirmed a borrowing base of $1 billion for the company's senior secured revolving credit facility, based upon oil and gas reserves as of Aug 31, 2009.
 
The company has $500 million drawn under the credit facility and believes that the approval of $1 billion borrowing base provides enough financial flexibility for the development of its high-growth resource base. The company expects to achieve double-digit production growth in 2010 while evaluating opportunities for its Horn River project in northeast British Columbia.
 
Quicksilver has the option to increase the credit facility up to $1.45 billion, subject to lender consents and additional commitments. The company can extend the maturity of the credit facility, which matures February 2012, up to two additional years with consenting lenders.
 
The company said that JPMorgan Chase Bank, N.A. led the group of 24 lenders and there were no other changes in the terms and conditions of the credit facility.
 
Quicksilver expects to release its third quarter results before the market opens on Nov 9.
 
Quicksilver Resources is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional natural gas reserves, including coalbed methane, shale gas, and tight sands gas in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas and Cut Bank, Montana.

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