Forest Oil’s Eagle Ford JV should be announced in short order. The company opened its data room early in 2012 and plans to increase drilling activity after a partner is brought in.
Low natural gas prices are straining the company’s capital plans. Capital raised through a jv partner will ensure the company can successfully develop its core acreage in the play. If a partner isn’t found reasonably soon, the company will likely sacrifice leases in other areas of the country in favor of the Eagle Ford.
2012 has been a struggle for the company. Two executives have left, with the CEO being the most recent, and the company’s stock has dropped approximately 50% since the beginning of the year.