Market Overview

Forest Oil to Sell South Texas Properties

Forest Oil Corporation (NYSE: FST) (Forest or the Company) today
announced that it has entered into a definitive agreement to sell all of
its properties located in South Texas, excluding its Eagle Ford Shale
oil properties, for after-tax cash proceeds of $325 million. The
transaction is expected to close on or before February 15, 2013, with an
effective date of January 1, 2013, and is subject to customary closing
conditions and post-closing purchase price adjustments. The properties
produced 66 MMcfe/d (86% natural gas) during the third quarter of 2012,
had estimated proved reserves of 272 Bcfe (85% natural gas) as of
December 31, 2011, and generated approximately $60 million of
lease-level income during 2012. Forest intends to use the proceeds from
this divestiture

See full press release

Posted-In: News Guidance Asset Sales

 

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