Dallas, Texas 09/04/2013 (Financialstrend) – Forest Oil Corporation (NYSE:FST) had recently announced the sale of a portion of the company’s largely undeveloped acreage position held in the Permian Basin of West Texas. The definitive sale agreement signed up with an undisclosed buyer had laid out the aggregate value for the sale of this acreage position to be at $35 million. The sale transaction would cover to include the property of 58,200 gross acres of land in the Crockett County, Texas. It is expected that the sale proceedings would be completed by September 10, 2013 after completing all the procedures related to the closing conditions and the customary price adjustments.
Forest Oil Corporation (NYSE:FST) had further announced that the net proceeds from the sale valued at $35 million would be utilized for the reduction of outstanding borrowings of the company under the credit facility. Once the sale transaction is completed, the company would be left with the acreage position of around 68,250 gross acres of land in the Permian basin which are located in the Reeves and Pecos Counties of Texas. The company is primarily engaged in the acquisition, exploration and production of oil and natural gas from its reserve properties in the United States and in selected locations in the international markets.
Shares of Forest Oil Corporation (NYSE:FST) dipped on Tuesday to close at $5.39 per share, a decrease of 3.06% over the previous close. The stock prices for the day traded in the range of $5.32 to $5.65 per share. For the past 52 weeks, the stock had presented low price at $3.77 and high price at $9.32 per share. The stock managed to pull in around 3.02 million trades on Tuesday, while the average level for the past 30 days of trading is at 3.41 million shares per day. There are presently 120.08 million outstanding shares for the company and the institutional ownership is at 114%.