Forest Oil Agrees to Revised Terms for Rockies Divestiture Package
Forest Oil Corp.
Forest Oil has agreed to revised terms with the buyer of its Rockies divestiture package. Under the terms of the revised agreement:
- The cash purchase price was reduced from $258 million to $200 million.
- The effective date was changed from July 1, 2008 to December 1, 2008. Cash flow from the assets during this period is estimated at approximately $12 million and will be retained by Forest.
- The buyer has agreed to assume certain gas balancing liabilities.
- The buyer has agreed to pay a potential additional payment to Forest based on the price of natural gas in 2009. The potential additional payment is capped at $21 million.
- The deposit amount associated with the sale was increased from $13 million to $33 million.
- All material seller representations and warranties and material conditions to close have been eliminated
The transaction is currently scheduled to close on November 25, 2008. Forest will reassess 2008 guidance upon the close of this transaction.
RELATED COMPANIES
Most Popular Articles
- Brand Finance Ranks Most Valuable, Strongest Oil and Gas Brands
- Oil and Gas Executives Predict WTI Oil Price
- Canacol Makes New Gas Discovery in Colombia's Magdalena Basin
- FortisBC Denies Gas Greenwashing as Suit Awaits
- Centcom Outlines Latest Red Sea Moves
- Egypt Plans to Meet Summer Fuel Needs with LNG Imports
- Credit Agricole Helps NGP Secure Funds for Fishery-Solar Projects in Taiwan
- Industry Protests Proposed Methane Fee Guidelines for O&G Facilities in US
- Exxon, Cnooc Merge Guyana Arbitration Claims Against Chevron
- Ruptured Oil Pipeline Causes South Sudan's Revenues to Nosedive
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- Blockchain Demands Attention in Oil and Gas
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- USA Oil and Gas Job Figures Jump
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- OPEC and China Conduct High Level Energy Meeting
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension