Forest Oil to spin off Canadian plays via IPO

摘要

Washington-Denver-based independent For- est Oil will spin off its Canadian assets through an IPO process designed to minimize taxes, hoping the market will see value in the Canadian oil and gas plays it feels have been ignored, while freeing Forest to focus its efforts in the Granite Wash, the Haynesville and Eagle Ford Shales. Forest said December 13 that it will offer the public 20% of the shares in its Lone Pine Resources subsidiary in the first half of next year. Lone Pine would become the parent company of Canadian Forest Oil, the current owner of Forest's Canadian operations, at the initial offering. Within four months of the offer ing, Forest said it would distribute the remain- ing 80% of Lone Pine shares to shareholders, minimizing their taxes.