Forest Oil Corp. (NYSE:FST) has entered into a definitive agreement with an undisclosed buyer to sell a portion of its largely undeveloped acreage position located in the Permian Basin of West Texas for proceeds of approximately $35 million.
The transaction includes approximately 58,200 gross acres (52,350 net) located in Crockett County, Texas. The sale is expected to close on or before September 10, 2013 and is subject to customary purchase price adjustments and closing conditions. The company intends to use the proceeds from this divestiture to reduce outstanding borrowings under its bank credit facility.
Following the closing of this transaction, Forest will retain its Permian Basin acreage position of approximately 68,250 gross acres (63,500 net) located in Pecos and Reeves Counties, Texas.