Forest Oil To Sell Texas Panhandle Area Assets For Proceeds Of $1 Bln

(RTTNews) - Forest Oil Corp. (FST) announced that it has entered into a definitive agreement to sell its oil and gas assets located in the Texas Panhandle Area to Templar Energy LLC for $1.0 billion.

The company noted that Le Norman Operating LLC, a wholly-owned subsidiary of Templar, will operate the assets. The transaction is expected to close on or before November 25, 2013, with an effective date of October 1, 2013, and is subject to customary purchase price adjustments.

The divested properties have produced about 100 MMcfe/d during 2013, generated EBITDA of approximately $180 million for the most recent twelve month period, and had estimated proved reserves of 517 Bcfe as of December 31, 2012. Forest does not expect to incur any federal and state income taxes on the sale and intends to use the proceeds primarily to reduce debt and enhance financial flexibility.