DENVER (AP) — Forest Oil Corp. said Thursday that it will sell Templar Energy LLC its Texas Panhandle oil and gas assets for $1 billion as it works to cut its debt.
The exploration and production company announced earlier this year that it was putting 100,000 acres of oil and natural gas fields in the Panhandle on the block.
Forest Oil has been selling assets to help lower its debt since last year. The company said that the deal also lets it keep developing its Eagle Ford Shale wells. The energy-rich formation is in southern Texas. Forest also has energy properties in Arkansas, Louisiana, Oklahoma and Wyoming.
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The deal with Templar, a privately held company, is expected to close by Nov. 25.
Shares of Forest, which is based in Denver, are up 6.3 percent to $6.75 in after-hours trading. The company’s stock has dropped 24 percent in the past 12 months.