Pacific Energy Amends Alaskan Purchase Agreements
Pacific Energy Resources has amended its definitive purchase agreements with Forest Oil and Forest Alaska Holding with respect to the purchase of all of oil and gas properties and operations owned by Forest and Forest Holding in Alaska. As a result of the amendments, the Corporation will acquire 100% of the membership interests in Forest Alaska Operating, which owns the majority of the Alaska properties and operations, plus certain additional Alaska assets owned by Forest, including an interest in the Cook Inlet Pipeline for approximately US$400,000,000 plus the issuance of 10,000,000 shares of the Corporation's common stock and a seven year seller note to Forest with a net present value of approximately $30,000,000.
Under the amendments, the transactions will close on or before August 24, 2007.
The FAO assets include nine fields located in the Cook Inlet area, Alaska covering the major fields of McArthur River, Redoubt Shoal, West McArthur River and Trading Bay; and (ii) the minor fields of West Foreland, Three Mile Creek, Sabre, Kustatan and Cosmopolitan. DeGolyer & MacNaughton, an independent consulting firm retained by the Corporation estimated 26.06 million barrels equivalent (MMBOE) of net Proved Reserves (11.3 MMBOE of Proved Developed Producing, 2.6 MMBOE of Proved Developed Non-Producing and 12.22 MMBOE of Proved Undeveloped), 27.82 MMBOE net Probable reserves and 6.72 MMBOE of Possible reserves for a total of 60.59 MMBOE of Proved, Probable and Possible reserves, under current Nymex strip prices.
In addition to the producing properties, the Forest assets to be acquired include nearly 1,000,000 net acres covering multiple exploration prospects including three offshore prospects of Corsair, Raptor and Valkyrie.
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