Forest Oil to Sell South Texas properties for $325M Forest Oil has entered into a definitive agreement to sell all of its properties located in South Texas, excluding its Eagle Ford Shale oil properties, for after-tax cash proceeds of $325M. The transaction is expected to close on or before February 15, with an effective date of January 1. The properties produced 66 MMcfe/d (86% natural gas) during Q3 2012, had estimated proved reserves of 272 Bcfe (85% natural gas) as of December 31, 2011, and generated approximately $60M of lease-level income during 2012. Forest intends to use the proceeds from this divestiture to pay down debt and retains all of its natural gas hedges.
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