Forest Oil Corp., Denver, (NYSE: FST) has closed its acquisition of The Houston Exploration Co., Houston, (NYSE: THX) for $1.5 billion in cash and stock and will assume net debt estimated at $100 million. Forest worked with New York-based Jana Partners LLC, which holds 14.7% of outstanding Houston Exploration shares. Jana has agreed to not propose any extraordinary transactions with Forest or seek to influence the management or control of Forest for a year following the deal's closing. The Houston Exploration assets are in South Texas, East Texas, the Arkoma Basin of Arkansas and Oklahoma and the Uinta and D-J basins in the Rockies. Production is 205 million cubic feet of gas equivalent per day, and proved reserves are approximately 655 billion cubic feet equivalent. Forest now has estimated proved reserves of approximately 2 trillion cubic feet equivalent (approximately 69% proved developed, approximately 70% gas).
Recommended Reading
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.