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.