Forest Oil Announces Agreement to Sell Arkoma Basin Natural Gas Properties
November 17 2014 - 4:37PM
Business Wire
Forest Oil Corporation (NYSE:FST) (Forest or the Company) today
announced that it has entered into a definitive agreement to sell
its natural gas properties located in the Arkoma Basin for
after-tax cash proceeds of approximately $185 million. The
transaction is expected to close on or before December 15, 2014,
with an economic effective date of October 1, 2014, and is subject
to customary closing conditions and post-closing purchase price
adjustments. The properties produced 22 MMcfe/d (100% natural gas)
during the third quarter of 2014, had estimated proved reserves of
159 Bcfe (100% natural gas) as of December 31, 2013, and generated
approximately $23 million of lease-level income during the past
twelve months ended September 30, 2014 (when NYMEX Henry Hub
pricing averaged $4.27 per Mcf).
The aforementioned Arkoma Basin transaction is not related to
Forest’s pending business combination with Sabine Oil & Gas LLC
(“Sabine”), and Sabine has given its consent to the sale of
Forest’s Arkoma Basin assets. As previously announced, Forest has
scheduled the special meeting of shareholders for November 20,
2014, to consider and vote on the proposed combination with Sabine.
Forest shareholders of record at the close of business on October
3, 2014, the record date, are entitled to vote at the Forest
special meeting. A definitive proxy statement was sent to Forest
shareholders on or around October 20, 2014. Closing of the
transaction is also subject to other closing conditions. If
approved, Forest anticipates the transaction to close in 2014.
IMPORTANT ADDITIONAL INFORMATION FILED WITH THE SEC
In connection with the proposed transactions, Forest Oil
Corporation has filed a definitive proxy statement with the
Securities and Exchange Commission (“SEC”), and each of Sabine Oil
& Gas LLC and Forest Oil Corporation also plan to file other
relevant documents with the SEC regarding the proposed
transactions. INVESTORS ARE URGED TO READ THE DEFINITIVE PROXY
STATEMENT AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE
THEY CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of
the definitive proxy statement and other relevant documents filed
by Sabine Oil & Gas LLC and Forest Oil Corporation with the SEC
at the SEC’s website at www.sec.gov. You may also obtain Forest’s
documents by contacting Forest Oil Corporation’s Investor Relations
department at www.forestoil.com or by email at
IR@forestoil.com.
PARTICIPANTS IN THE SOLICITATION
Forest Oil Corporation, Sabine Oil & Gas LLC and their
respective directors and executive officers and other members of
management and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transactions.
Information about Forest Oil Corporation’s directors is available
in Forest Oil Corporation’s proxy statement filed with the SEC on
March 26, 2014, for its 2014 annual meeting of shareholders, and
information about Forest Oil Corporation’s executive officers is
available in Forest Oil Corporation’s Annual Report on Form 10-K
for 2013 filed with the SEC on February 26, 2014. Information about
Sabine Oil & Gas LLC’s directors and executive officers is
available in the definitive proxy statement filed by Forest Oil
Corporation. Other information regarding the participants in the
proxy solicitations and a description of their direct and indirect
interests, by security holdings or otherwise, is contained in the
definitive proxy statement and other relevant materials filed with
the SEC regarding the proposed transactions. Investors should read
the definitive proxy statement carefully before making any voting
or investment decisions. You may obtain free copies of these
documents from Forest Oil Corporation using the sources indicated
above.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements concerning the
proposed transactions, its financial and business impact,
management’s beliefs and objectives with respect thereto, and
management’s current expectations for future operating and
financial performance, based on assumptions currently believed to
be valid. Forward-looking statements are all statements other than
statements of historical facts. The words “anticipates,” “may,”
“can,” “plans,” “believes,” “estimates,” “expects,” “projects,”
“intends,” “likely,” “will,” “should,” “to be,” and any similar
expressions or other words of similar meaning are intended to
identify those assertions as forward-looking statements. It is
uncertain whether the events anticipated will transpire, or if they
do occur what impact they will have on the results of operations
and financial condition of Forest Oil Corporation or Sabine Oil
& Gas LLC. These forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from those anticipated, including but not limited to the
ability of the parties to satisfy the conditions precedent and
consummate the proposed transactions, the timing of consummation of
the proposed transactions, the ability of the parties to secure
regulatory approvals in a timely manner or on the terms desired or
anticipated, the ability of Forest Oil Corporation to integrate the
acquired operations, the ability to implement the anticipated
business plans following closing and achieve anticipated benefits
and savings, and the ability to realize opportunities for growth.
Other important economic, political, regulatory, legal,
technological, competitive and other uncertainties are identified
in the documents filed with the SEC by Forest Oil Corporation from
time to time, including Forest Oil Corporation’s Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on
Form 8-K, including amendments to the foregoing. For additional
information on the risks and uncertainties that could impact Sabine
Oil & Gas LLC’s business and operations, as well as risks
related to the transactions, please see the definitive proxy
statement filed by Forest Oil Corporation. The forward-looking
statements included in this document are made only as of the date
hereof. Neither Forest Oil Corporation nor Sabine Oil & Gas LLC
undertakes any obligation to update the forward-looking statements
included in this document to reflect subsequent events or
circumstances.
Forest Oil Corporation is engaged in the acquisition,
production, exploration, and development of natural gas and liquids
in the United States. Forest’s principal reserves and producing
properties are located in East Texas, the Eagle Ford in South
Texas, Arkansas, and Louisiana. Forest’s common stock trades on the
New York Stock Exchange under the symbol FST. For more information
about Forest Oil, please visit its website at http://www.forestoil.com.
CONTACT FOR INVESTORSForest Oil CorporationLarry C.
Busnardo, 303-812-1441VP – Investor Relations
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