Tuesday, December 1, 2009

Forest Oil Focuses on Haynesville

Forest Oil announced the sale of its remaining Permian Basin assets in Texas and New Mexico to SandRidge Energy for $800 million along with some other smaller properties in Canada (although the release is unclear as to who bought them).  The sale allows Forest to concentrate on its unconventional gas assets in the Haynesville Shale and Granite Wash.  Forest is yet another company putting its proverbial eggs in the domestic unconventional/shale gas basket.

I'm a big believer in shale gas, but when you see so many companies rushing to do the same thing, I can't help but think "bubble."  Not that I don't think shale gas is for real - I do.  Maybe I've just been stung by the financial goings-on of the past decade and am gun shy about gold rush strategies.  ...Or maybe it's evidence of a switch to a new paradigm.  You will get a lot of argument on both sides.

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