Forest Oil to Sell South Louisiana Properties

Forest Oil Corp. (NYSE:FST) announced that it has entered into an agreement to sell all of its properties in South Louisiana for about $220 million. It will update its guidance for this year after the transaction closes.

As quoted in the press release:

The transaction is expected to close on November 16, 2012, with an effective date of August 1, 2012, and is subject to customary closing conditions and post-closing purchase price adjustments. The properties produced 20 MMcfe/d (65% liquids) during the third quarter of 2012 and had estimated proved reserves of 45 Bcfe (62% liquids) as of December 31, 2011. Forest intends to use the proceeds from this divestiture to repay outstanding borrowings under its bank credit facility.

Click here to read the full Forest Oil Corp. (NYSE:FST) press release.