Forest Oil Corp. said it purchased $102 million of stock in an undisclosed privately owned company with about 102 Bcfe of proved gas and oil reserves located primarily in the Permian Basin and five fields in South Texas.

The reserves are 70% oil, 85% proved developed and currently produce 25 MMcfe/d. The purchase is the latest in Forest’s 2003 acquisition program, which so far has included about 310 Bcfe in proved reserves. “This acquisition is consistent with the strategy announced in September to acquire properties in this region,” said Forest CEO Craig Clark. “There are exploitation opportunities through secondary recovery, recompletions, shallow drilling and cost reductions.”

The stock purchase includes working capital, other financial assets and liabilities. Forest said it intends to utilize its credit facility to fund the transaction, which is expected to close on Dec. 31.

Forest’s 2003 acquisition program has added significant assets in the Gulf of Mexico, Gulf Coast and the Permian Basin. The program, which has been in place since May of this year, has included $370 million in purchases and an additional 154,000 acres of property.

Forest has bought about 310 Bcfe in proved gas and oil reserves this year, 80% of which are proved developed and 67% of which are onshore in the United States. The purchases have added about 110 MMcfe/d of production, 60% of which is natural gas.

On average, the company has paid about $1.19/Mcfe and $3,363 per MMcfe/d of production with an estimated reserve life of eight years.

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