Banks Confident Of Quicksilver Resources Inc (NYSE:KWK)
The $480 million market capped independent oil and gas producer Quicksilver Resources Inc (NYSE:KWK) has posted a strong 6.87% in value. This surge has been on the back of 16.67% rise the stock has posted in the past one week of trading.
This surge follows a vote of confidence from the consortium of 20 banks which have contributed to its revolving credit fund. The firm announced that close to 20 banks which make up the lending consortium has reaffirmed its existing loan limit of $350 million. This in turn means that the existing combined credit limit will continue as is till the next review. The Oil and gas firm also disclosed that the amended Combined Credit Agreements has reworked the minimum interest that the revolving credit fund will attract between now and June of 2014 to be pegged at 1.10 xs. The firm also indicated that its liquidity is around $341 million as of October 31 and this includes the reaffirmed funds via its revolving credit and cash on hand and short term investments.
Quicksilver Resources Inc (NYSE:KWK) is a Fort Worth, head quartered oil and gas development stage company. It is trying to acquire new oil and gas properties and attempting to explore and develop the same into production stage oil properties. It has operations spread across various oil rich regions in U.S and Canada.
Post the surge in its share price yesterday, Quicksilver Resources Inc (NYSE:KWK) stock was trading at $2.8 per share, 94% higher than its 52 week low price points. In the past quarter the stock has been really cranking it up in terms of market appreciation. It is up 67% in the last 90 days of trading as against a 9.3% dip in valuation over the past 12 months. The oil firm has accumulated net loss of $360 million in the past 12 months.