Forest Oil Corporation announced the successful logging and testing of the Redoubt Unit No. 2 well located in the Cook Inlet of Alaska. The well extends the field to a southern fault block separate from the No. 1 discovery well. The No. 2 well was drilled to a total depth of 15,325 feet and logged approximately 452 feet of net pay. The well tested at a stabilized flow rate of 1,170 barrels of oil per day from two intervals in the Hemlock formation. Utilizing pressure data gathered during the flow test, the production rate for the well is estimated to be 3,000 barrels of oil per day using artificial lift. It is estimated that recoverable oil in the Redoubt Shoal area will exceed 50 million barrels. The No. 3 should be spudded by the end of July. This well will test the down dip limits of the Hemlock formation in the southern fault block.
Full field development drilling and construction activities for the facilities has commenced. The facilities are being designed to process 20,000 barrels of oil per day. The cost of field development drilling and facilities construction in 2001 and 2002 is currently estimated at $150 to $175 million. First production is expected by the end of 2002.