Forest Oil Corp. (NYSE: FST) has closed the sale of its properties in South Texas for net cash proceeds of US $307 million.

A subsequent closing on these hold-back properties is expected to occur within 90 days. Proceeds will be used to redeem the remaining US $300 million principal amount outstanding of the company’s 8.5% senior notes due 2014. In connection with the closing of this transaction, the global borrowing base under Forest’s credit facilities has been reduced to US $900 million.

Headquartered in Denver, Forest Oil Corp. is engaged ...