Forest Oil Successful at Redoubt Shoal
Forest Oil Corporation announced the successful drilling and logging of their third well, Redoubt Unit No. 3 (100% Forest-owned) located in the Cook Inlet of Alaska. The well was drilled to extend the field and define the downdip limits of the reservoir in the south fault block discovered by the No. 2 well. The well was drilled to a total depth of 16,940 feet and logged approximately 436 feet of net oil pay. The drilling extended the reservoir's downdip limit by approximately 300 feet without encountering the oil/water contact at total depth. Since the logs indicated reservoir quality similar to the No. 2 well, the well was not production tested for oil. Forest believes the No. 3 well will produce at rates similar to the No. 2 well.
Forest previously announced that the recoverable oil in Redoubt Shoal would exceed 50 million barrels. The positive results of the Redoubt Unit No. 3 well are being incorporated as part of a reserve study currently underway by the Company. At December 31, 2000, Forest reported 9.8 million barrels of estimated proved reserves at Redoubt Shoal.
In addition to a very successful delineation of the oil reservoir in the south fault block, the well encountered a natural gas zone. Logs indicated approximately 40 net feet of gas pay, which was tested at 8.5 mmcf/d at 3,500 psi FTP. The Company is examining the implications of this natural gas discovery but believes that, at a minimum, the natural gas will reduce field level fuel costs associated with oil production.
Within the next 30 days, the Company will spud the No. 4 well to attempt to delineate the eastern boundary of the north fault block previously discovered by the No. 1 well. The full field development of Redoubt Shoal is underway, with first production estimated to occur prior to 2003.