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Forest Oil sells Texas acreage

Sept. 4, 2013 at 6:54 AM   |   Comments

DENVER, Sept. 4 (UPI) -- An undisclosed buyer spent $35 million to purchase more than 58,000 gross acres of land in the resource-rich Permian basin in Texas, Forest Oil Corp. said.

Forest announced the sale of 58,200 acres in western Texas means it still retains approximately 68,250 gross acres in the Permian Basin.

For the second quarter of the year, oil services company Baker Hughes counted 8,800 new wells in service in the United States. More than 3,000 of the wells were in the Permian and Eagle Ford basins spread across southern states. Texas had the most onshore activity with 848 rigs.

Texas Railroad Commissioner Christi Caddick told an economic forum in Chicago last month her state was the 14th largest oil producer in the world, producing an average of 1.6 million barrels per day.

Forest, which has headquarters in Denver, said in a statement Tuesday it "intends to use the proceeds from this divestiture to reduce outstanding borrowings under its bank credit facility."

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