DENVER, Oct. 4 (UPI) -- A sale of oil and natural gas assets in the Texas Panhandle means Forest Oil can focus more on developing shale reserves in the state, the company's CEO said.
Forest's sale of an undisclosed number of oil and natural gas acres for $1 billion gives his company more financial flexibility to focus on key assets, Chief Executive Officer Patrick McDonald said.
"This divestiture sharpens our operational focus and enables us to maintain development efforts in our core Eagle Ford Shale asset, where oil production is projected to show notable growth over the next several years," he said in a statement Thursday..
Forest, which has headquarters in Denver, said the properties produced 100 million cubic feet of gas equivalent per day this year and have estimated proven reserves of 517 billion cubic feet of gas equivalent.
The U.S. Energy Information Administration estimates Eagle Ford may hold as much as 10 billion barrels of oil, making Texas one of the leading oil-producing states in the union.