By Denver Business Journal

Forest Oil Corp. has completed a spinoff of its Canadian subsidiary, Lone Pine Resources Inc., by distributing 70 million shares in the unit to Forest investors.

Lone Pine now trades as LPR on the New York and Toronto stock exchanges. Forest Oil, a Denver-based independent producer, continues to trade as FST on the New York Stock Exchange.

Those who owned Forest Oil shares as of Friday received 6.1248511 shares of Lone Pine for each 10 Forest Oil shares they own in a tax-free distribution.

Prior to the distribution, Forest Oil owned 82.3 percent of Lone Pine's shares.

In May, Lone Pine sold 15 million shares at $13 each in an initial public offering, raising $183 million.

The spinoff -- first announced in December 2010 -- is aimed at separating Forest's assets in Canada from the rest of the company.

"We hope that Forest's shareholders will continue to benefit from the strong asset portfolio and future upside that exists in Canada through their ownership in Lone Pine's stock," President and CEO H. Craig Clark said in a statement Friday.

Copyright 2011 American City Business Journals
Copyright 2010