facebook
twitter
rss
account
search
search
 

Sabine, Forest join forces in Texas shale

Forest Oil to become Sabine subsidiary under merger agreement.
By Daniel J. Graeber   |   May 6, 2014 at 10:28 AM   |   Comments

| License Photo
HOUSTON, May 6 (UPI) -- Two companies, Sabine Oil & Gas and Forest Oil Corp., said Tuesday they signed a merger agreement to become one of the largest entities working in East Texas.

Sabine and Forest announced an all-stock transaction that would combine their assets in East Texas, including the Eagle Ford shale basin.

Sabine shareholders will hold a 73.5 percent stake in the parent company Sabine Oil & Gas Corp., which will have headquarters in Houston.

In April, the U.S. Energy Information Administration said it expected a net increase of 71,000 barrels of oil per day from shale basins in the country. The Eagle Ford shale area in Texas is expected to lead in terms of oil production with a 2.3 percent increase from April to May.

Combined, Sabine and Forest produce an estimated 345 million cubic feet equivalent, of which 65 percent is natural gas.

The new business entity will be lead by Sabine's current management team. Forest Oil will remain in existence as a Sabine subsidiary.

Follow @dan_graeber and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
4
Teledyne subsidiary gains contract for submarine work Teledyne subsidiary gains contract for submarine work
5
Don't panic, stocks will rebound Don't panic, stocks will rebound
Trending News
Around the Web
x
Feedback