The gap between West Texas Intermediate crude oil and Europe’s Brent crude since the start of the year has shrunk 6.4 percent to its narrowest margin since September. The U.S. benchmark has fallen in value as increased domestic production and lack of access to pipelines to transport crude to refineries have created a supply glut. The Department of Energy recently reported that oil inventories at the Cushing oil-transport hub was at an all-time high of 49.8 million-barrels. The Seaway Pipeline transport oil from the Cushing hub to refineries along the Gulf Coast.
Halcon Resources oil and natural gas reserves are located primarily in Wichita, Wilbarger and Starr Counties, Texas, Pontotoc County, Oklahoma. As of December 31, 2011, its estimated net proved reserves were 21.1 million barrels of oil equivalent, of which approximately 59% were crude oil, 32% were natural gas, and 9% were natural gas liquids.
Forest Oil’s principal reserves and producing properties are located in the United States in Arkansas, Louisiana, Oklahoma, Texas, Utah, and Wyoming. The company has recently agreed to sell all of its properties located in South Texas, excluding its Eagle Ford Shale oil properties, for $325 million. As of December 31, 2011, the properties had estimated proved reserves of 272 Bcfe (85% natural gas).