Forest Oil's (FST) announcement this morning that the company is initiating a formal sale process for its most important asset, the Granite Wash properties in the Texas Panhandle, may puzzle some shareholders. Indeed, the decision goes well beyond the company's earlier strategy of divesting select non-core assets to reduce debt and help finance its oil-focused drilling program. If successful, the sale of Texas Panhandle assets would substantially transform the company's complexion, leaving Forest with a much reduced operational footprint which will include two core areas:
- the approximately 27,000 net acres expected to be held by production in the Eagle Ford in a Joint Venture with Schlumberger, and
- 111,000 net acres in East Texas (which includes Haynesville, although
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