Quicksilver Resources gets OK for $1B borrowing

Quicksilver Resources says bank group approves $1 billion borrowing base

• On 6:46 pm EDT, Thursday October 22, 2009

FORT WORTH, Texas (AP) -- Quicksilver Resources Inc., a natural gas and oil producer, said Thursday its bank group has approved a $1 billion borrowing base for its senior secured revolving loan.

Philip W. Cook, Quicksilver senior vice president and chief financial officer, said about $500 million has been drawn under the credit facility and the approval of the $1 billion borrowing base provides enough financial flexibility for Quicksilver to continue 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.

The lenders have extended $1 billion of commitments and the company has the option to increase the credit facility up to $1.45 billion, subject to lender consents and additional commitments.

The Fort Worth, Texas, company can extend the maturity of the credit facility, which matures February 2012, up to two additional years with consenting lenders.

JPMorgan Chase Bank NA led the group of 24 lenders and there were no other changes in the terms and conditions of the credit facility, Quicksilver Resources said.

Quicksilver Resources also said it expects to release its third-quarter results before the market opens Nov. 9.

Shares fell in aftermarket trading by 28 cents, or about 2 percent, to $15.40. The stock edged down 3 cents, to $15.68 in regular trading.

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