Eagle Ford Shale

Forest Oil - Eagle Ford Shale Update

Forest Oil (FST) reported the results on three recent horizontal wells drilled into the Eagle Ford Shale in Texas, where the company has 40,000 net acres under lease.

Forest Oil said that the wells averaged maximum production of 787 barrels of oil equivalent (BOE) per day during a 24 hour period, with 96% of the production composed of oil.

Forest Oil has moved a second rig to the field and reports that the average cost to drill and complete a well is now under $6 million per well. The company estimates that Eagle Ford Shale wells will have an estimated ultimate recovery of 300,000 BOE and earn a return of 25% at a West Texas Intermediate price of $80 per barrel.

Forest Oil has reduced its overall capital spending for 2012 and now estimates that the company will spend between $190 million and $210 million in the second half of the year.  The company spent $435 million in the first half of 2012.

Forest Oil Reports On Eagle Ford Shale Operations

Forest Oil (FST) completed five horizontal wells into the Eagle Ford Shale in the third quarter of 2011, and reported an average twenty four initial production rate of 481 barrels of oil equivalent (BOE) per day on these wells.

Forest Oil drilled one of these wells into the uppermost section of the Eagle Ford Shale and used a different hydraulic fracturing technique that involved smaller and less expensive fracturing stages. This well had a twenty four hour production rate of 951 BOE per day and 552 BOE per day during the first 21 days of production.

Forest Oil has four other wells drilled into the uppermost portion of the Eagle Ford Shale and plans to use the same completion technique on these wells.

Forest Oil is drilling vertical wells to conduct micro seismic monitoring of its acreage in the Eagle Ford Shale.  The company expects to use these vertical wells to provide water for future horizontal completions.

Forest Oil Updates Eagle Ford Shale Operations For Second Quarter Of 2011

Forest Oil (FST) issued an update for the second quarter of 2011 on its development operations of the Eagle Ford Shale in Texas. The company increased its leasehold in the play to 113,000 net acres despite the divestiture of 10,000 net acres in Wilson County. 

Forest Oil reported the production results of four Eagle Ford Shale wells with average initial production rates during the first 24 hours of 747 barrels of oil equivalent (BOE).

Forest Oil also increased its capital budget allocated to the Eagle Ford Shale by $120 million for the second half of 2011 as the company seeks to accelerate its oil development activity.