Forest Oil Corporation (NYSE:FST)
FST reported that it has entered into a definitive agreement to sell to Templar Energy LLC its oil and gas assets located in the Texas Panhandle Area for $1.0 billion. Templar's wholly-owned subsidiary Le Norman Operating LLC will operate the assets.
The transaction is expected to close on or before November 25, 2013, with an effective date of October 1, 2013, and is subject to customary purchase price adjustments and certain closing conditions.
The divested properties have produced approximately 100 MMcfe/d during 2013, generated EBITDA of approximately $180 million for the most recent twelve month period (including an allocation of FST ’s G&A expense), and had estimated proved reserves of 517 Bcfe as of December 31, 2012.
FST does not expect to incur any federal and state income taxes on the sale and intends to use the proceeds primarily to reduce debt and enhance financial flexibility.
FST is engaged in the acquisition, exploration, development, and production of natural gas and liquids in the United States and selected international locations. FST 's estimated proved reserves and producing properties are located in the United States in Arkansas, Louisiana, Oklahoma, Texas, and Wyoming.
More about Forest Oil Corporation (NYSE:FST) at www.forestoil.com
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