Forest Oil amends loan to raise Canadian borrowing base, lower U.S. borrowing base

By Sara Rosenberg

New York, Dec. 27 - Forest Oil Corp. amended its $600 million credit facility to reallocate its global borrowing base, according to a company news release.

Under the amendment, the Canadian borrowing base was increased to $100 million from $50 million and the U.S. borrowing base was decreased to $500 million from $550 million.

This modification was made to accommodate a $75 million dividend from Canadian Forest Oil to Forest in 2005. The dividend will be invested in U.S. oil and gas properties and will be eligible for favorable U.S. tax treatment under the American Jobs Creation Act of 2004.

Forest oil is a Denver-based oil and gas exploration and production company.

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