Forest Takes Reins of Katy Field, Accelerates Barnett Shale Program
Forest Oil Corp. on Wednesday announced two transactions that will expand the company's Forest's 2007 capital program beyond its "Big Three" properties. On August 1, 2006, Forest assumed operatorship of the Katy Field, located in Waller, Fort Bend, and Harris counties in Texas from ExxonMobil. In a separate move, the company executed an exploration joint venture agreement with a third party that increases Forest's current gross acreage to 20,000 in the prolific Barnett Shale, primarily in Hill and Erath counties in Texas.
Katy Field (52% Working Interest) On August 1, 2006, Forest took over operatorship of the Katy Field located in Southeast Texas. The field contains 131 existing wellbores, 56 of which are producing. Forest had previously been a non-operator of this field for approximately 14 years with a 52% working interest. Forest operated a 3D seismic survey in 2003 that targeted deeper objectives. The Katy Field encompasses approximately 33,000 gross acres and has produced more than 10 Tcf of natural gas to date, primarily from the Yegua formation. It had gross production of 13 MMcfe/d during the first quarter of 2006.
Barnett Shale (48-100% Working Interest) Forest recently increased its gross acreage position to approximately 20,000 acres in the Barnett Shale play in North Texas through the execution of an exploration joint venture agreement with a third party for its acreage in Hill County, which covers approximately 14,000 acres as well as ongoing leasing activity. The acreage is located primarily in Hill and Erath counties, with 3D seismic over a portion of the acreage. The first horizontal well in Hill County was spud in July 2006. After this initial well and further evaluation of the acreage, Forest anticipates developing an active drilling program in this area in 2007.
Forest Oil Corp. is engaged in the acquisition, exploration, development, and production of natural gas and liquids in North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in Alaska, Louisiana, New Mexico, Oklahoma, Texas, Utah, Wyoming, and in Canada.
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