Forest Oil and Mariner Energy Complete Spin-off and Merger
Forest Oil and Mariner Energy jointly announced the completion of the spin-off of Forest's subsidiary, Forest Energy Resources, Inc. (FERI), which owns Forest's Gulf of Mexico operations, and the completion of a subsequent merger of FERI with a subsidiary of Mariner, making Mariner a leading Gulf of Mexico focused independent exploration, development and production company. Mariner will commence regular way trading on the New York Stock Exchange on March 3, 2006, under the symbol ME.
Forest President and CEO, H. Craig Clark, commented: "We are excited about the future of both Forest and Mariner. This transaction is a step in unlocking the intrinsic value of Forest's shares. It provides a substantial dividend to Forest shareholders in the form of a significant interest in one of the premier Gulf focused independents which is now available as an investment to the public for the first time. In addition, Forest now provides greater visibility for growth in its onshore North American asset base where we are expecting 10% organic growth in 2006. I appreciate the hard work and commitment of the people that brought about today's successful transaction. We want to thank Mariner for being our partner in this transaction and wish our employees well who will be joining Mariner."
Scott D. Josey, Mariner's Chairman and Chief Executive Officer, stated: "The combination of the closing of this creative transaction and the listing of our stock on the NYSE marks a major milestone in the history of Mariner. It enables our company to emerge as a dynamic Gulf of Mexico focused independent with strong cash flow, modest debt, and a broad set of opportunities in the shelf, deep shelf, and deepwater. We appreciate the confidence placed in Mariner by Forest's management and board of directors. Many people, on both sides of the transaction, worked tirelessly to achieve this great outcome, and I thank them. We welcome the Forest employees to the Mariner team and look forward to the challenge of continuing to create value for our stockholders."
Holders of record of Forest common stock as of the close of
business on February 21, 2006, will receive 0.8093 shares of Mariner
common stock for every share of Forest common stock owned of record on
such date. The distribution occurred today.
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