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

Market watch: Energy futures prices rose slightly Friday

05/06/2002 Crude oil futures prices rose slightly Friday amid lingering uncertainty about a possible disruption of Middle East supplies, although tensions in ...

Gulf of Mexico oil service sector showing signs of an upturn

05/06/2002 The Gulf of Mexico oil service sector is experiencing the signs of an upturn, analysts with Simmons & Co. International, UBS Warburg LLC, and RBC D...

OTC: Industry, national agencies need to work together to make FPSOs work in the gulf

05/06/2002 Over the coming years, the oil and gas industry will have to keep an open line of communication with national agencies such as the US Coast Guard a...

Market watch: Energy futures prices fall as Iraq lifts embargo

05/07/2002 Crude oil futures prices fell Monday after Iraq announced plans to lift a self-imposed export embargo with exports expected to resume by Wednesday.

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