Forest Oil added a rig walking system to one of its rigs in the Eagle Ford and plans to start multi-well pad drilling on its central fairway acreage. A four well pad site is expected to be drilled in 65 days compared to 85 days of drilling for four wells on separate pads. Costs savings are estimated at 8-15% depending on the lateral length and completion design. Currently, the company estimates cost at $5.5-6 million per well.
During the quarter, two wells were completed at unrestricted average rates of 638 boe/d and four wells were brought online in the company's restricted rate program at an average rate of 542 boe/d.
Third quarter production volumes increased to 1,800 boe/d net to Forest. The company has 100,000 gross (91,000 net) acres in what the company characterizes as the "oil bearing" portion of the play. Current development plans will hold approximately 40,000 net acres in the coming years.