The third well, located 40 km from the well locations drilled in 2001, encountered 11.4 meters (36 feet) of gas pay and was tested at 31 MMcfe/d with a flowing tubing pressure of approximately 2,400 PSI. The second well, located 8 km from the third well, encountered 4.9 meters (15 feet) of gas pay but was not tested. The second and third wells were drilled for approximately $4 million and $3 million, respectively.
These amounts represent an average decrease in drilling costs of approximately 50% per well compared with the 2001 drilling program. The rig will next move 4 km away to drill a delineation well to this discovery. Forest, as operator, holds a 53% working interest in the project, PetroSA has a 24% working interest and Anschutz has a 23% working interest. Forest has a full carried interest in this $30 million program.
As a result of its exploration programs in 2001 and 2003, Forest has successfully discovered natural gas in 5 out of 7 wells that have total combined test rates of 221 MMcfe/d, including the initial discovery well A-K1. Forest has not yet booked any proved reserves associated with its South African holdings.
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