Forest Oil Corp., Denver, (NYSE: FST) has revised the sale terms of its Rockies divestiture package with an undisclosed buyer including a reduced sales price from $258 million to $200 million in cash.
Revised terms also involve changing the effective date from July 1 to Dec. 1, in which Forest will retain the estimated $12 million in cash flow for the period. The buyer will assume certain gas-balancing liabilities as well.
As part of the revised deal, the buyer has also agreed to pay a potential additional payment to Forest of $21 million maximum based on the price of natural gas in 2009. The deposit was increased from $13 million to $33 million.
The assets include Forest’s Niobrara and San Juan properties and other properties in Wyoming and Utah. These properties are currently producing 21 million cubic feet equivalent per day and had estimated proved reserves of 81 billion cubic feet equivalent at Dec. 31, 2007.
The deal is scheduled to close Nov. 25.
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