DENVER, Apr 01, 2008 (BUSINESS WIRE)
Forest Oil Corporation (NYSE:FST) (Forest or the Company) announced today a new natural gas discovery in the Utica Shale located in Quebec, Canada. In addition, the Company announced that is has agreed to purchase properties located in its Ark-La-Tex core areas for $285 million.
Over the last two years, Forest has accumulated approximately 269,000 net acres, under lease or farmout, in the St. Lawrence Lowlands in Quebec, Canada. Two vertical pilot wells were drilled in 2007, testing the Utica Shale, to a total depth of approximately 4,800 feet. Production rates tested up to 1 MMcfe/d. Although the play is still in the early stages, Forest believes the initial results are encouraging due to the following factors:
- Shallow depth of the shale
- Rock properties are comparable to other more established shale plays
- High-quality natural gas with minimal impurities
- Infrastructure in place with nearby access to major pipelines
- Premium natural gas pricing to NYMEX makes the economics compelling
Forest plans to drill three horizontal wells in 2008 to refine its drilling and completion techniques. Based on technical data and the vertical pilot well program, the preliminary net resource potential on Forest’s acreage is estimated to be approximately 4 Tcfe. First production is expected in 2009 with the potential for a full scale drilling program in 2010 and beyond.
SOURCE: Forest Oil Corporation
Forest Oil Corporation
Patrick J. Redmond, 303-812-1441
Director – Investor Relations