Sabine Oil & Gas Corp (OTCMKTS:SOGC) popped off from its low of $0.13 to the high of $0.35 some few weeks ago. However, it failed to extend its gains and from thereon has been continuously declining. In January 2015, Forest Oil Corp. was merged into the company after being delisted by the reputed NYSE market. The trading ticker was changed to ‘SOGC’ from ‘FSTO.’ The stocks of Sabine Oil have always been there at the top of speculators list. As soon as it finds a bottom, and reverses, the moves will become explosive.
The problem at the moment is the Forest bondholders who registered a case against Sabine Oil in February alleged that the merger resulted in a change of control. It required Sabine Oil to redeem the ‘Notes.’ The lawyers representing the company are scheduled to meet with attorneys for Forest Oil bondholders for the first time since they registered a lawsuit against the company. The bondholders’ attorney, Sigmund Wissner-Gross, stated a preliminary meeting is scheduled for March 30, 2015 where lawyers discuss schedules for discovering facts for the lawsuit.
Sabine Oil & Gas Corp (OTCMKTS:SOGC) is a leading name in the energy industry focused on the production, exploration, acquisition and development of liquids and natural gas in the United States. Its main reserves and producing properties are based in East Texas, Arkansas, Louisiana and the Eagle Ford in South Texas. It acquired Forest, a firm incorporated long ago in 1924, in January. It has been a publicly held firm since 1969.
The oil decline
Sabine Oil problems have been aggravated as the oil prices have plunged from over $100 a barrel to below $50. The company had to dilute its Arkoma Basin properties for almost $185 million and was then delisted to the bb as it failed to meet the $1 minimum threshold.