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