Sabine Oil & Gas, Forest Oil To Combine In All-stock Transaction - Quick Facts

(RTTNews) - Sabine Oil & Gas LLC and Forest Oil Corp. (FST) announced the signing of a definitive merger agreement for the two companies to combine their businesses in an all-stock transaction.

Sabine and Forest believe that their complementary asset portfolios will create one of the industry's largest East Texas players, benefiting from drilling program optimization and economies of scale.

The combination is also strengthened by a sizable collective Eagle Ford position, as well as Granite Wash, Permian and Arkoma positions that provide optionality for development and monetization.

Upon completion of the transaction, Sabine unit holders will own about 73.5 percent of the new combined entity and Forest shareholders will own around 26.5 percent.

The combined entity, named Sabine Oil & Gas Corp., will be a newly formed parent company expected to list on the New York Stock Exchange under the symbol "SABO".

The combination will be headquartered in Houston, Texas, and be led by Sabine's current executive management team. The transaction is expected to be tax-free to Forest's shareholders.

The combined company will have estimated proved reserves of 1.5 trillion cubic feet equivalent, and estimated daily production of 345 million cubic feet equivalent for 2014.