Forest Oil (FST) held a conference call to discuss earnings for the second quarter of 2010, and made comments on the company’s activities in the Eagle Ford Shale in Texas. The company is assessing its acreage through a review of seismic data, and plans to start a drilling program in the fourth quarter of 2010.
“As I’ve said, several of our rigs are capable of drilling Eagle Ford horizontals, and if we have other targets we’ve already used some of our Lantern fleet to drill those other targets as well. So I think the rig issue is not as much of a concern.”
“Seismic acquisition is under way on our Eagle Ford acreage with process data expected to be delivered late in the third quarter of this year. We will then target drilling commencing in the fourth quarter.”
“As previously stated, we believe that the acreage to be in the oil window, and we feel we’re in the right zip code based on reported offset well results. Several of our Lantern rigs are well-suited for drilling in this area, and it’s a good thing, given the rapidly rising rig count in the Eagle Ford.”