Denver-based Forest Oil Corp. and Sabine Oil & Gas LLC of Houston have officially announced the finalization of their merger, according to the Denver Business Journal. The announcement was made on Tuesday. The combined company will now be called Sabine Oil & Gas Corp.
The merger was first approved by Forest Oil Corp. shareholders at a meeting last month. Sabine headquarters will remain in Houston, which is home to its President and CEO David Sambrooks. As part of the merger, Sabine investors have majority control of the combined company.
The company says it is now one of the largest upstream operators and lease holders in East Texas, with primary positions in the Eagle Ford, Haynesville and Granite Walsh shale plays.
Sabine Oil & Gas President and CEO David Sambrooks:
“Since we announced the combination in May 2014, market dynamics have changed considerably, but the logic for combining these two complementary companies has not. Today’s closing will create a strong platform for growth and bring stability and upside opportunity to stockholders of the combined company.”
There is some concern for Sabine coming from Wall Street. Forest’s share price has dropped below $1 for 30 consecutive trading days, according to the New York Stock Exchange (NYSE). The NYSE also announced that the combined company will not be allowed to trade publicly on the exchange because the NYSE considers the merger of privately held Sabine with Forest a “back door listing.” However, Sambrooks says that he does intend to have the merged company listed on an active exchange. In the meantime, Sambrooks says the company will trade on the over-the-counter-market.