Forest Oil to sell Arkoma basin gas properties

Forest Oil Corp., Denver, has agreed to sell its natural gas properties in the Arkoma basin for aftertax cash proceeds of $185 million. The deal, effective Oct. 1, is expected to close on or before Dec. 15.

The properties produced 22 MMcfd of natural gas equivalent during the third quarter and had estimated proved reserves of 159 bcfe, 100% of which is natural gas, as of Dec. 31, 2013.

The deal is unrelated to Forest’s pending merger with Sabine Oil & Gas LLC (OGJ Online, May 6, 2014). Sabine has given its consent for the sale of Arkoma assets.

Forest has scheduled the special meeting of shareholders for Nov. 20 to consider and vote on the merger with Sabine. If approved, Forest expects the transaction to close by yearend.