Forest Oil to Sell Alaska Assets
Forest Oil Corp. on Tuesday announced a definitive agreement to sell 100% of its Alaskan assets, which includes its wholly owned subsidiary, Forest Alaska Operating LLC (FAO), to Pacific Energy Resources Ltd. for consideration of approximately $464 million made of up the following components:
--Cash of $380 million to repay the FAO term loans, --Cash of approximately $68 million to be paid to Forest, and --5,500,000 shares of Pacific common stock to be issued to Forest valued at approximately $16 million based on the current common stock price
The effective date of the transaction is January 1, 2007. At January 1, 2007, Forest's estimated proved reserves associated with the assets totaled approximately 181 billion cubic feet equivalent (Bcfe), and for 2006 the production from the assets averaged approximately 38 million cubic feet equivalent (MMcfe) per day. In addition to FAO, the assets to be sold include net undeveloped acreage of approximately 1,000,000 acres and Forest's interest in the Cook Inlet Pipe Line Company.
H. Craig Clark, President and CEO, stated, "We are pleased to announce this agreement to sell our Alaskan assets right on the schedule we stated earlier this year. We want to thank our Alaska employees for their past efforts and their contributions to the sale process. We also want to thank Pacific for working with us on the transaction. Our equity ownership in Pacific indicates our confidence in their plan for further developing these assets based on their work in similar fields in the US."
The transaction is expected to close on June 30, 2007, subject to customary closing conditions and adjustments. Scotia Waterous advised Forest on this sale.
Forest Oil Corp. is engaged in the acquisition, exploration, development, and production of natural gas and crude oil in North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in Alaska, Louisiana, New Mexico, Oklahoma, Texas, Utah, and Wyoming, and in Canada.
- Forest Oil to Put Texas Panhandle Properties Up For Sale (Jul 15)
- Forest Oil Partners with Schlumberger on Eagle Ford Shale Land (Apr 12)
- Forest Oil to Sell South Texas Assets Excluding Eagle Ford (Jan 03)
Company: Pacific Energy Resources more info
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