Forest Oil Picks Up East Texas Cotton Valley Assets

Forest Oil said Monday that it has completed its previously announced acquisition of producing assets located primarily in the Cotton Valley play in East Texas.

The approximately 26,000-net-acre (14,000 net undeveloped) acquisition adds 110 Bcfe of proved reserves and another low-risk repeatable onshore development play, the company said in a written statement. According to Forest, the acreage offers a growing production profile and more than 300 potential drilling locations.

The cash consideration paid at closing for the oil and gas assets is approximately $255 million (subject to customary closing adjustments). Forest funded 100 percent of its purchase price utilizing its existing credit facility.