Forest Oil Dropping to 1 Rig in 2012

Forest Oil will develop its Eagle Ford assets utilizing 1 rig in 2012. That's down from two running in past months. The company plas to spend a total of $550-600 million next year, with most of its budget allocated to the Granite Wash and other properties in the Texas Panhandle.

For the year ended December 31, 2012, Forest intends to invest between $550 million and $600 million for capital activities (excluding capitalized interest, capitalized stock-based compensation, and asset retirement obligations incurred) as detailed below. The exploration and development capital budget is expected to include five to six operated rigs in the Texas Panhandle, two operated rigs in East Texas / North Louisiana, one operated rig in the Eagle Ford Shale Play, and one operated rig in the Permian Basin.