Forest Oil Sells Panhandle Assets to Focus Efforts in the Eagle Ford

Forest - Schlumberger Eagle Ford Acreage
Forest - Schlumberger Eagle Ford Acreage

Forest Oil is selling assets in the Texas Panhandle for $1 billion to Templar Energy and will focus the company's efforts in the Eagle Ford. The Panhandle assets produced an average of 100 mmcfe/d during the first nine months of 2013.

In the past year, Forest has sold assets in South Texas, the Permian Basin, and the Panhandle to improve the company's balance sheet.

Even the Eagle Ford wasn't immune from the company's plans, Forest sold a 50% interest in the company's acreage to Schlumberger earlier in the year.

This transaction comprises a major component of the strategic deleveraging program we instituted in mid-2012 and will allow us to significantly reduce long-term debt and greatly enhance our financial flexibility and liquidity. This divestiture sharpens our operational focus and enables us to maintain development efforts in our core Eagle Ford Shale asset, where oil production is projected to show notable growth over the next several years.
— Patrick R. McDonald, CEO