Forest Oil has sold 5,600 net acres in the Eagle Ford for $15 million. The deal and others are expected as the company focuses on its core area of 40,000 acres. The company also announced it sold South Louisiana properties for $220 million.
In total, Forest now has $277 million in asset sales under agreement. The CEO Patrick McDonald commented:
“We are pleased to announce continued progress in our deleveraging plan with the sale of our non-core South Louisiana properties. Our team has made meaningful strides in improving the Company’s financial position, and we will continue to focus on other non-core divestitures to improve our balance sheet and increase our financial flexibility as we maintain focus on the development of our core oil properties.”
When Forest abandoned plans to seek a JV partner in the Eagle Ford, the company had a little more than 100,000 net acres targeting the play. The company’s core acreage is comprised of 40,000 net acres, so expect to see additional announcements in South Texas. The company will either seek farm outs or additional divestitures in the area.