logo
  Join        Login             Stock Quote

Forest Oil (FST) Agrees To Divest Non-Core South Texas Natural Gas Properties

 January 03, 2013 08:15 AM
 


(By Balachander) Forest Oil Corp. (NYSE: FST) said it has agreed to sell its non-core South Texas natural gas properties for after-tax cash proceeds of $325 million.

Forest plans to use the proceeds from the sale to pay down debt and retains all of its natural gas hedges.

According to Forest Oil, the properties produced 66 MMcfe/d (86 percent natural gas) during the third quarter of 2012, had estimated proved reserves of 272 Bcfe (85 percent natural gas) as of December 31, 2011, and generated roughly $60 million of lease-level income during 2012.

"The allocation of capital and resources towards our core oil and liquids assets in the Texas Panhandle and Eagle Ford, alongside the evident improvement in our financial position, is a material positive for us," commented CEO Patrick McDonald.

[Related -The Gap Inc. (GPS): Bearish Options Change Hands On Gap]

The company said it will divest all of its properties located in South Texas, excluding its Eagle Ford Shale oil properties.

On a pro forma basis, the company said the liquids contribution of its production mix is roughly 40 percent and will continue to increase due to its oil-focused drilling program.

Forest said it continues to maintain its strategic natural gas optionality within our significant East Texas / North Louisiana acreage position.

The deal is expected to be completed on or before February 15, 2013, with an effective date of January 1, 2013.

FST shares closed Wednesday's regular trading at $6.91.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageRussell 2000 Showing Relative Weakness at the New Highs

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the read on...

article imageThe Poster Boy For Liberal Economics Discovers The Tax Factor

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times read on...

article imageMacroprudential Policy And Distribution Of Risk

There is very little doubt that housing prices and leverage played a strong role in the global financial read on...

article imageIs the World Turning Japanese?

Many really think so, but reality suggests read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.