Forest Oil Corp. of Denver said it is looking to sell its Texas Panhandle oil and gas assets in order to better concentrate on oil projects in the South Texas Eagle Ford shale.
After receiving unsolicited proposals from parties interested in the Texas Panhandle assets, Forest’s board hired J.P. Morgan Securities LLC to assist in marketing efforts.
Patrick R. McDonald, Forest Oil president and chief executive officer, said the sale of the Texas Panhandle assets, if completed, would help the company accelerate development of its South Texas projects and reduce debt.
So far Forest Oil has focused its Eagle Ford drilling in Gonzales County, Tex.
Forest plans to operate up to two rigs in the shale during 2013 and believes that it can hold a core development position of 40,000 net acres over the next several years.
In addition, Forest Oil has 111,000 net acres in East Texas which is largely held by production.