Forest Oil Corporation Acquires ATCOR Resources for C$4.88 per Share

Strategic Insights -

Forest Oil Corporation, a prominent player in the energy industry, has announced the signing of a definitive agreement to acquire ATCOR Resources, a Canadian exploration and production company, for C$4.88 per share. The acquisition, valued at a total of C$186 million (U.S.$135 million), marks a significant milestone for Forest Oil Corporation as it expands its presence in the Canadian market.

As part of the agreement, Forest Oil Corporation will acquire all outstanding shares of ATCOR Resources, which owns properties concentrated in Alberta and British Columbia. ATCOR Resources is also engaged in gas processing and marketing in Canada, with an interest in undeveloped Canadian frontier lands. The transaction is contingent upon Forest's completion of a stock offering, which is expected to close in late January 1996.

Key Takeaways:

  • Forest Oil Corporation will acquire ATCOR Resources for C$4.88 per share, totaling C$186 million (U.S.$135 million).
  • The acquisition is contingent upon Forest's completion of a stock offering, which is expected to close in late January 1996.
  • ATCOR Resources owns properties concentrated in Alberta and British Columbia, with an interest in undeveloped Canadian frontier lands.
  • ATCOR Resources has natural gas marketing operations that marketed an average of 671 MMCF per day during the nine months ended September 30, 1995.
  • Forest Oil Corporation has announced its intention to seek approval of its stockholders for a 1 for 5 reverse stock split at a stockholders' meeting scheduled for January 9, 1996.
  • ATCOR Resources had estimated net proved reserves of 169 BCFE as of December 31, 1994, with substantially all of these reserves being proved developed.
  • Forest Oil Corporation will acquire an 18% interest in an ethane extraction plant located in Edmonton, Alberta, as part of the acquisition.

Statistics:

  • Acquisition value: C$186 million (U.S.$135 million)
  • Number of shares outstanding: approximately 5.3 million
  • Percentage of ATCOR equity held by ATCO, Ltd. and its affiliates: 45%
  • Estimated net proved reserves of ATCOR Resources as of December 31, 1994: 169 BCFE
  • Average daily natural gas marketing operations for ATCOR Resources during the nine months ended September 30, 1995: 671 MMCF per day
  • Number of gross acres of frontier lands owned by ATCOR Resources: 441,000
  • Number of net acres of undeveloped land owned by ATCOR Resources: 253,000

Sources:

  • Business Wire, "Forest Oil Corporation to Acquire ATCOR Resources, Ltd. for C$4.88 per Share" (December 13, 1995)
  • Forest Oil Corporation press release, "Forest Oil Corporation to Acquire ATCOR Resources, Ltd. for C$4.88 per Share" (December 13, 1995)