Forest Buys Up East TX/North LA Acreage, Identifies 5Tcfe Potential
Forest Oil Corp
Monday, June 30, 2008
Forest Oil Corporation has increased its acreage position in East Texas/North Louisiana to approximately 143,000 gross acres (113,000 net acres) through acquisitions and leasing activity, and the Company has identified a 5 Tcfe additional net unrisked potential in its development plan.
Forest believes that approximately 114,000 gross acres (90,000 net acres) are prospective for the Haynesville/Bossier Shale trend in the current area of heightened activity in East Texas/North Louisiana.
The majority of Forest's acreage is in Harrison County, Texas and Red River, Webster and Bienville Parishes of Louisiana.
Forest's current production in its East Texas/North Louisiana area is 75 - 80 MMcfe/d and is expected to exit 2008 at 85 - 90 MMcfe/d.
"Forest is well positioned to capitalize on the developing Haynesville/Bossier Shale play which has been identified as prospective on our acreage. Our strategy in this shale will be similar to the one deployed in our highly successful horizontal development program being utilized in the Cotton Valley sands," said Forest President and CEO H. Craig Clark.
"The Cotton Valley horizontal program has produced excellent results with initial producing rates ranging from 3.3 - 7.8 MMcfe/d. Forest intends to employ a vertical pilot program in 2008 which includes 10 - 15 wells to test the Haynesville/Bossier Shale in order to identify potential horizontal targets," he continued.
"We will then follow that up with a combined vertical and horizontal program to optimize the economics in the play. Within this plan, Forest intends to commence a 2 - 3 well Haynesville/Bossier Shale horizontal program in the fourth quarter of 2008 based on its pilot program results. We are very excited about our proven results in the Cotton Valley and the potential of the emerging Haynesville/Bossier Shale play. We look to apply our best in class field operations to maximize our potential in all productive zones in East Texas and North Louisiana," said Clark.