Tests Successful for Forest Oil in Italy
Forest Oil Corporation has tested a second discovery well and an additional zone in the initial discovery well in the Monte Pallano Area located in Central Italy. The second discovery well tested 8 MMcfe/d without fracture stimulation. The flow rate was limited by on-site test equipment. The initial discovery well has now tested at a total rate of 14 MMcfe/d after the perforation of an additional zone. The combined test rate of the two wells is 22 MMcfe/d without fracture stimulation. Forest is now working to obtain approval to construct pipelines and facilities and bring both wells on production, which is currently expected to occur in the first half of 2009. Forest holds a 90% working interest in approximately 8,000 net acres in the Monte Pallano Area. The evaluation of the acreage surrounding these wells is currently underway to identify future drilling locations. In addition to this acreage, Forest has 282,000 net acres in Italy located primarily in the Po Valley.
H. Craig Clark, President and CEO, stated, "While Italy is considered a "Flyer Asset" within our portfolio and therefore not included in Forest's Onshore North American low-risk development, repeatable play strategy, it furthers Forest's value capture initiative from its international assets that was started in August 2003. Forest will evaluate all opportunities surrounding its Italian discovery at Monte Pallano and continue to move through the permitting approvals to bring this production on-line into the Italian natural gas marketplace which we believe is starved for domestic supply."
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