Completed the spin-off of Lone Pine Resources
Net sales volumes decreased 3% sequentially to 323 MMcfe/d due to 10 MMcfe/d of production downtime in the Texas Panhandle associated with third party infrastructure issues
Initial results from the horizontal drilling program targeting “oil zones” in the Texas Panhandle exceeded expectations
Initial results from the first Eagle Ford Shale well drilled in the uppermost member of the section exceeded expectations
Fourth quarter 2011 net sales volumes guidance of 335 MMcfe/d to 345 MMcfe/d assuming no improvement in production downtime in the Texas Panhandle
DENVER, Oct 31, 2011 (BUSINESS WIRE) — Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced financial and operational results for the third quarter of 2011. The financial results of Forest’s former Canadian subsidiary, Lone Pine Resources Inc. (Lone Pine) (NYSE: LPR) (TSX: LPR) are treated as discontinued operations in the accompanying consolidated financial statements. Subsequent to the initial public offering of Lone Pine on June 1, 2011, Forest owned approximately 82% of the outstanding shares of Lone Pine’s common stock. On September 30, 2011, Forest distributed, or spun-off, its remaining ownership in Lone Pine in the form of a pro rata common stock dividend to all Forest shareholders of record as of the close of business on September 16, 2011 (the Record Date). Forest shareholders received 0.61248511 of a share of Lone Pine common stock for every share of Forest common stock held as of the close of business on the Record Date.
The information contained throughout the remainder of this press release, unless otherwise indicated, relates only to Forest and excludes the operations of Lone Pine from the current and historical periods.