Forest Oil Corporation (FST) reported earnings for the first quarter of 2010, and held a conference call on May 4, 2010 to discuss the results. The company made comments on its acreage in the Haynesville Shale.
“We've seen deals by offset operators in recent weeks that price Haynesville/Bossier acreage at $10,000 to $15,000 an acre depending on how you calculate it.”
“In our Haynesville/Bossier program, we added almost 17,000 net acres of land in the core during the first quarter. This increases our core acreage to almost 28,000 net acres. We currently have two wells pending completion in Red River Parish. In addition to our operated activity, we participated in two outside operated wells completed in the first quarter for average initial rates of 22 million cubic feet per day.”
“We have four rigs drilling, two in Woodardville Field in Red River Parish and two drilling in the Sabine Parish portion of the Bossier. As we have stated previously, the majority of our drilling this year is to hold leases, and we will have almost all of our land held in this play by the end of 2010.”
Source: Seeking Alpha
