Pacific Energy To Acquire Forest's Alaska Assets

Pacific Energy Resources Ltd., Long Beach, Calif., (Toronto: PFE) plans to acquire all of the Alaska assets of Forest Oil Corp., Denver, (NYSE: FST) for US$448 million in cash and US$16 million in stock in a total deal valued at US$464 million. The assets include Forest's subsidiary Forest Alaska Holding LLC and remaining assets not held by Forest Alaska, including an equity interest in the Cook Inlet Pipeline Co. Properties include nine fields in the Cook Inlet area, with the major fields of McArthur River, Redoubt Shoal, West McArthur River and Trading Bay, and the minor fields of West Foreland, Three Mile Creek, Sabre, Kustatan and Cosmopolitan. Net production is approximately 5,900 barrels of oil equivalent per day (80% oil). Proved reserves are 15.8 million barrels equivalent (181 billion cubic feet equivalent), of which 13.2 million barrels are proved producing, and possible and probable reserves of 44.7 million barrels for total proved, probable and possible reserves of 60.6 million barrels.