Forest Oil agreed to a joint venture with Schlumberger in the Eagle Ford during the second quarter and it didn't take long for the company to increase its activity in the region. Forest Oil's operated Eagle Ford production grew 59% to 4,300 boe/d and net production grew 21% to 2,300 boe/d during the second quarter.
The company completed nine Eagle Ford wells at an average initial production rate of 529 boe/d and well costs have fallen from $7 million in 2012 to $6 million in the quarter.
The first seven wells completed with Schlumberger's HiWay flow channel technique were in various stages of completion at the end of the quarter. Watch for production results from these wells in the coming weeks.
“Our Eagle Ford Shale asset took a significant step forward during the quarter.... We recently ramped up our drilling activity further by adding a fourth drilling rig to the field. We are encouraged by recent well results as we implement ongoing technological refinements and enhancements to our drilling and completion process in an effort to optimize well results and costs.”
Eagle Ford production grew even though Forest Oil spent less in the Eagle Ford. That's the benefit of having costs carried by a partner. As a result of the financial terms of the Schlumberger deal, Forest increased activity in the play while spending fell from $131 million in the first quarter to $74 million in the second quarter.
The companies are also expanding the use of micro-seismic and have subsurface data and reservoir studies ongoing.
In the quarterly release, Forest also announced plans to sell assets in the Panhandle to further improve the company's balance sheet. Read the full press release at forestoil.com