Forest Oil – Schlumberger Eagle Ford Development Agreement Inked

Less Acreage Means More Value For Forest In Deal Worth $3,300/Acre
Forest - Schlumberger Eagle Ford Acreage

Forest – Schlumberger Eagle Ford Acreage | Click to Enlarge

Forest Oil and Schlumberger have signed an Eagle Ford development agreement in Gonzales County, TX. Schlumberger will pay $90 million in the form of future drilling and completion services, as well as related development capital in order to earn a 50% interest in Forest’s Eagle Ford acreage position.

Once the $90 million has been contributed, Forest and Schlumberger will participate in future drilling on a 50/50 basis. Forest expects the drilling carry will contribute to development through 2014. [Read more…]