Forest Oil selling noncore South Texas gas assets

Forest Oil Corp., Denver, agreed to sell its South Texas properties, excluding its Eagle Ford shale oil properties, for aftertax cash proceeds of $325 million.

The buyer is a privately owned exploration and production company, Forest said.

Subject to customary closing conditions, the transaction is expected to close by Feb. 15 with an effective date of Jan. 1.

The properties, which produced 66 MMcfed (86% natural gas) during third-quarter 2012, had estimated proved reserves of 272 bcfe (85% natural gas) as of Dec. 31, 2011.

Forest intends to use the proceeds from this divestiture to pay down debt and retains all of its natural gas hedges.

Patrick R. McDonald, president and chief executive officer, said the company is allocating its capital and resources towards core oil and liquids assets in the Texas Panhandle and Eagle Ford.

After the South Texas divestiture closes, liquids will account for 40% of the Forest Oil production. McDonald expects the liquids share of the production mix will increase.

Related Articles

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

MARKET WATCH: Crude oil, gas futures prices slide entering spring

03/21/2014

The first day of spring in the northern hemisphere was marked by lower crude oil and natural gas futures prices.

OMV acquires West of Shetland licenses from Hess

03/21/2014 OMV AG has reached an agreement with Hess Corp. to acquire four licenses in West of Shetland, UK, including Cambo field and the Blackrock prospect,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected