Denver-based Forest Oil Corp. made interim CEO Patrick R. McDonald the company’s permanent chief, prompting speculation by one analyst that “all strategic options remain on the table for the company.” McDonald had served as interim chief since June 21 while the company’s board conducted a search for a replacement for former CEO H. Craig Clark. Clark left the company abruptly, sparking speculation that it was because of a failure to strike a joint venture in the Eagle Ford Shale. Wells Fargo Securities analyst David Tameron said the appointment of McDonald was a positive for the company and could signal more news to come. “We believe the announcement may allow Street speculation surrounding the potential takeout of the company to continue, as a new CEO would have likely entered with a multiyear restructuring road map. From our take, all strategic options remain on the table,” Tameron said in a note.
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Forest Oil Makes Interim Chief Permanent
Denver-based Forest Oil Corp. Wednesday said it would make interim CEO Patrick R. McDonald the company’s permanent chief, prompting speculation by one analyst that “all strategic options remain on the table for the company.”
Eagle Ford Production Booming with Focus on Oil
Crude oil production from the Eagle Ford Shale of South Texas has overtaken gas production, which is increasing the shale’s profitability, a recent analysis of the play has found.
Chesapeake Leading Early Gold Rush in Niobrara Shale
Permits and production are soaring in the Niobrara Shale where Chesapeake Energy is indicating it has unlocked some important finds as it eyes the play as a significant contributor to its strategy for expanding its production of natural gas liquids (NGL).
Industry Brief
Oklahoma City-based GMX Resources Inc. has hired Global Hunter Securities to help it sell a portion of the company’s Cotton Valley Sand liquids-rich natural gas properties in East Texas. A transaction is expected during the third quarter, GMX said. The company’s natural gas resources are in the East Texas Basin, in the Haynesville/Bossier shale and the Cotton Valley Sand Formation, where the majority of its acreage is contiguous, with infrastructure in place and substantially all held by production, GMX said. In early 2011 GMX branched out from its Haynesville/Bossier properties and acquired about 67,724 net acres within the core horizontal oil development areas of the Bakken/Sanish-Three Forks Formation in the Williston Basin and the Niobrara Formation in the Denver-Julesburg Basin (see Shale Daily, Feb. 2, 2011).
Forest Cuts Capex, Goes Solo in Eagle Ford
Despite previously announced intentions to find a partner to help develop its Eagle Ford Shale acreage, Denver-based Forest Oil Corp. said it has identified a “go-it-alone plan that is attractive to the company.”
Utah Resident Sues for Closed-Door Actions to Challenge BLM
A closed-door meeting held in Utah’s Uintah County earlier this year by officials from three states and industry representatives violated the state’s open meeting law because during the meeting officials mapped out strategies to challenge a Bureau of Land Management (BLM) ruling to restrict oil shale development, according to a lawsuit filed this week.
Forest Plans to Go It Alone in Eagle Ford
Despite previously announced intentions to find a partner to help develop its Eagle Ford Shale acreage, Denver-based Forest Oil Corp. said it has identified a “go-it-alone plan that is attractive to the company.”
QEP Fined $1.2M for Inaccurate Royalty Reports
The Interior Department’s Office of Natural Resources Revenue (ONRR) has fined Denver-based producer QEP Resources Inc. $1.2 million for the “knowing or willful maintenance” of inaccurate oil and natural gas royalty and/or production reports on ONRR’s financial system.
Antero Exits, Vanguard Enters Arkoma Basin in $445M Deal
Denver-based Antero Resources is unloading its Arkoma Basin assets and redeploying capital to Appalachian shale plays while Vanguard Natural Resources LLC, which is buying Antero’s mostly natural gas Arkoma assets for $445 million, is establishing a new operating area with the deal.