Denver-based oil and gas giant Forest Oil Corporation is putting a “For Sale” sign on its oil and gas assets located in the Texas Panhandle. The decision was made following unsolicited proposals from third parties interested in acquiring the assets, Forest said in a press release.
J.P. Morgan Securities LLC has been retained to assist in the efforts to market Forest’s assets in the Panhandle assets.
Forest plans to continue to develop its oil and natural gas liquids properties on 111,000 net acres in East Texas. Forest also has an ongoing development opportunity in the Eagle Ford Shale – oil production there is expected to more than double in 2014.
Earlier this year, Forest sold its South Texas property, excluding the Eagle Ford Shale, to Hilcorp Energy for $325 million in after-tax cash proceeds.
Forest plans to use the proceeds from a potential sale of the Texas Panhandle assets to reduce its debt and enhance its financial flexibility and its ability to develop its other assets.
Forest’s significant Panhandle acreage represents a large-scale, low-risk development opportunity, and that Forest and other companies had delineated substantial oil, natural gas and natural gas liquids resources in the Texas Panhandle, Patrick R. McDonald, Forest president and CEO, said.
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