UPDATE: Forest Oil Shares Add 6%, Near Day Top on $325 Mln Sale

By MidnightTrader.com Staff,

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Forest Oil ( FST ) shares are up 6.4% at $7.35, just off a day's high of $7.43, after the company said it sold all of its properties located in SouthTexas. The sale excluded its Eagle Ford Shale oil properties, for after-tax cash proceeds of $325 million. The transaction has an effective date of Jan. 1,


The properties produced 66 MMcfe/d (86% natural gas) during the third quarter of 2012, had estimated proved reserves of 272 Bcfe (85% natural gas) as of Dec. 31, 2011, and generated approximately $60 million of lease-level income during 2012.

FST shares have a day's range of $6.91 - $7.43, with a 52-week range of $5.68 - $15.15.

FST intends to use the proceeds from this divestiture to pay down debt and retains all of its natural gas hedges.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: FST

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