DENVER – Oil and natural gas producer Forest Oil Corp. issued revised guidance Wednesday for the second quarter and the rest of 2011 that excludes Canadian operations being spun into a new company.
Forest estimated average net sales volumes will range between 333 million cubic feet equivalent per day and 337 million cubic feet equivalent per day for the quarter that ended June 30.
The company said second-quarter production was reduced by 7 million cubic feet equivalent per day because of compression and plant downtime in the Texas Panhandle, flooding in south Louisiana and a divestiture.
Forest forecast exploration and development capital expenditures for the quarter to range between $190 million and $210 million.
For the second half of 2011, Forest said it expects total average net sales volumes of 335 million cubic feet equivalent per day and 345 million cubic feet equivalent per day.
Forest estimated it will spend between $350 million and $375 million on exploration and development in the six months ending Dec. 31. Total cash costs were forecast to range from $168 million to $178 million.
All of the estimates exclude operations that are being spun off into Lone Pine Resources. The Denver company completed 17.7 percent of the initial public stock offering of Lone Pine last month, which raised net proceeds of $183 million. Forest said it expects to distribute its remaining 82.3 percent ownership to its shareholders by Sept. 30.
Shares of Forest Oil fell 8 cents to close at $28.07.
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