Boston, MA 06/05/2014 (wallstreetpr) – Forest Oil Corporation (NYSE:FST) and Sabine Oil & Gas announced that the two companies signed an agreement for definitive merger in order to combine these two businesses. The merger will take place in all-stock transaction format. Both Sabine Oil & Gas as well as Forest Oil Corporation announced that the merger of the two companies will lead to complementary asset portfolio, which in turn will help in the creation of the largest East Texas tycoons of this industry. The entire transaction is said to be tax free for the Forest Oil Corporation’s shareholders.
Position of the Combined Company
- The two companies after merger will create Sabine Oil & Gas Corp., the combined company. This newly formed company might also be listed on the New York Stock Exchange, and its symbol will be SABO.
- In the new company, Sabine Oil & Gas unit holders will have around 73.5% share of the new entity while the Forest Oil Corporation shareholders will get approximately 26.5%.
- The headquarters of the newly formed entity would be in Houston, Texas.
- The new company will be led by the present Executive Management team of Sabine.
- In the new company, it is estimated that the proved reserves will be of 1.5 trillion cubic feet equivalent.
- The daily production of the newly formed company is expected to be 345 million cubic feet equivalent for the present year.
Statement from the President and CEO of Sabine Oil & Gas
The President and CEO of Sabine Oil & Gas, David Sambrooks said that their company has remained focused on building an asset base in East Texas. The combination of the two companies will therefore help in creating a leading industry position. He also said that Sabine looked forward to the application of operational expertise in the new combined asset base.
Statement from the President and CEO of Forest Oil Corporation
The President and CEO of Forest Oil Corporation (NYSE:FST), Patrick R. McDonald said that the transaction helped their company in creating a huge opportunity for the shareholders to take part in the upside potential from a larger entity.
