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Forest Oil Details Accelerated Eagle Ford Shale Drilling Program

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By Business Wirevia The Motley Fool

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Forest Oil Details Accelerated Eagle Ford Shale Drilling Program

Accelerated Development Program to Hold an Aggregate of 55,000 Gross (27,500 Net) Acres

Incorporate Four Drilling Rigs by the Third Quarter of 2013 and Drill 60 Gross (30 Net) Wells in 2013 and 80 Gross (40 Net) Wells in 2014

Eagle Ford Shale Average Net Sales Volumes Expected to Reach 6,500 Boe/d in 2014 from 1,600 Boe/d in 2012

DENVER–(BUSINESS WIRE)– Forest Oil Corporation (NYS: FST) (Forest or the Company) today provided an update on its Eagle Ford Shale drilling program for 2013 and 2014 and announced a teleconference call scheduled for April 12, 2013 at 7:00 AM Mountain Time to discuss the release.

Forest recently announced the signing of a definitive agreement with an industry partner for the future development of the Company’s Eagle Ford Shale acreage position. Under the terms of the agreement, the industry partner will pay a $90 million drilling carry in the form of future drilling and completion services and related development capital in order to earn a 50% working interest in Forest’s Eagle Ford Shale acreage position. In conjunction with the agreement, Forest plans to accelerate development by increasing drilling activity to four rigs, from one to two rigs currently, by the end of the third quarter of 2013. Forest projects that the capital carry amount combined with the accelerated pace of development will bring forward approximately $250 million in PV10 economics.

Forest anticipates that the accelerated development program will hold an aggregate of 55,000 gross (27,500 net) acres in Gonzales County, compared to 40,000 gross (40,000 net) acres based on the current development program. The increased acreage position has 688 gross (344 net) locations identified based on 80-acre spacing, and Forest anticipates being able to drill 80 gross (40 net) wells per year beginning in 2014. Based on Forest’s current estimated ultimate recovery of 300 Mboe per location, the Eagle Ford acreage contains a potential gross unrisked resource of over 200 MMboe (100 MMboe net).

Forest estimates that its share of capital expenditures in the accelerated development plan for 2013 and 2014 will total approximately $125 million and $220 million, respectively. The accelerated development plan will result in ten and

From: http://www.dailyfinance.com/2013/04/12/forest-oil-details-accelerated-eagle-ford-shale-dr/

Business, Finance, Occupation & Industry

Forest Oil Announces Eagle Ford Shale Development Agreement

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By Business Wirevia The Motley Fool

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Forest Oil Announces Eagle Ford Shale Development Agreement

Schlumberger to be Fully Aligned as a 50/50 Strategic Partner Providing Technology, Integrated Services and Capital Resources to Enhance Value of Eagle Ford Shale Asset

DENVER–(BUSINESS WIRE)– Forest Oil Corporation (NYS: FST) (Forest or the Company) today announced the signing of a definitive agreement with Schlumberger (NYS: SLB) , the world’s leading oilfield services company supplying technology, information solutions and integrated project management to the oil and gas industry, for the future development of Forest’s Eagle Ford Shale acreage in Gonzales County, Texas.

Patrick R. McDonald, Forest’s President and Chief Executive Officer, stated, “We believe that our Eagle Ford position is a valuable oil asset and being aligned and working together cooperatively with a strategic partner such as Schlumberger will greatly enhance the value of this important asset. Schlumberger Production Management (“Schlumberger”) will provide the technology, integrated services, and capital resources necessary for us to retain and develop a substantial portion of our acreage position. The development agreement allows for accelerated production growth and enhancement of our project economics as we integrate leading edge technologies across all aspects of our Eagle Ford development program. Forest anticipates increasing drilling activity to four rigs, from one to two rigs currently, by the end of the third quarter of 2013. The capital carry amount combined with the accelerated pace of development brings forward approximately $250 million in PV10 economics to Forest. We are pleased that Schlumberger, after several months of conducting their own technical due diligence, is partnering with us so that we can achieve the best possible results for our company and our shareholders.”

Carl Trowell, President, Schlumberger Production Management, commented, “We are pleased to be part of this exciting opportunity, in which Forest and Schlumberger are fully aligned and committed to the development of Forest’s Eagle Ford unconventional resources. Our primary goal will be to support and complement Forest’s current team, and to develop and deploy industry-leading technologies; develop the best unconventional resource workflows; and implement new reservoir management techniques in order to maximize production and reserves.”

Under the terms of the agreement, Schlumberger will pay a $90 million drilling carry in the form of future drilling and completion services and related development capital in order to earn a 50% working interest in Forest’s Eagle Ford Shale acreage position. Upon completion of the phased contribution of the drilling carry, Forest and Schlumberger will participate in future

From: http://www.dailyfinance.com/2013/04/12/forest-oil-announces-eagle-ford-shale-development-/