Forest Oil to repay some revolver borrowings with asset sale proceeds

By Sara Rosenberg

New York, Aug. 6 - Forest Oil Corp. plans to repay a portion of the debt under its revolving credit facility using proceeds from the sale of certain operated and non-operated properties in West Texas and New Mexico for about $118 million, according to a news release.

The assets are being sold in two transactions, both of which are expected to close in the third quarter.

At July 31, the company had about $636 million outstanding under its credit facility, a reduction of about $49 million from June 30. The reduction was primarily the result of free cash flow generation.

The company's current borrowing base totals $1.62 billion, resulting in about $981 million of remaining borrowing capacity at July 31.

Forest Oil is a Denver-based acquirer, explorer, developer and producer of natural gas and liquids.

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