Forest Oil announced that it has entered into a definitive agreement to sell all of its properties located in South Louisiana for approximately $220M. The transaction is expected to close on November 16, with an effective date of August 1, and is subject to customary closing conditions and post-closing purchase price adjustments. The properties produced 20 MMcfe/d during the third quarter and had estimated proved reserves of 45 Bcfe as of December 31, 2011. Forest intends to use the proceeds from this divestiture to repay outstanding borrowings under its bank credit facility.
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