By April 11, 2016 Read More →

Texas-based Forestar sells remaining Bakken/Three Forks oil and gas assets

Forestar completely exits its oil and gas working interest assets in North Dakota


Phil Weber, Chief Executive Officer of Forestar

AUSTIN, Texas – Forestar Group Inc. today announced that it has entered into two separate agreements with the same buyer to sell the company’s oil and gas assets in the Bakken/Three Forks formation in North Dakota for nearly $60 million.

“These transactions are additional significant steps forward in the execution of our strategy to exit non-core assets and reduce operating costs,” said CEO Phil Weber.

In first quarter 2016, Forestar sold 9 producing wells and over 900 net acres in North Dakota for $9.5 million.

The second transaction, expected to close in second quarter 2016 and subject to customary closing conditions, includes over 130 producing wells and nearly 8,100 net acres of leasehold interests for $50 million.

“These transactions are expected to generate meaningful cash proceeds and eliminate future capital allocation to non-core oil and gas assets. Combined with the previous sale of our Kansas and Nebraska oil and gas assets for $21 million, these transactions will substantially complete our exit of non-core oil and gas assets and eliminate our working interest exposure to fluctuations in oil and gas prices,” said CFO Chuck Jehl.

Posted in: Energy Financial

Comments are closed.