The deal in the form of a stock purchase with an undisclosed private company gives Forest Oil assets primarily in the Permian Basin in West Texas and five fields in south Texas. Forest Oil also would assume working capital, financial assets and liabilities of the selling company.
The assets to be acquired include 102Bcfe of estimated proved oil and gas reserves (70% oil and 85% proved developed) which presently produce approximately 25MMcfed.
Forest Oil has been on an active acquisition program in the Gulf of Mexico, Gulf Coast, and the Permian Basin since May, spending $US370 million on assets.
