Forest Oil expects to grow company-wide production by 11% next year, with oil production growing 90-100%.
Sales volumes from the Eagle Ford will drive growth. The company expects production from South Texas to more than double to 6,250 boe/d in 2014.
Forest is planning to spend 77% of its $290-310 million capital budget in the Eagle Ford.
A budget of ~$230 million includes the drilling of 80 gross (40 net) Eagle Ford wells. Forest will operate three rigs in the Eagle Ford and one in the Ark-La-Tex Basin.
“Following the completion of the Texas Panhandle asset sale, we are focused on the development and expansion of our Eagle Ford operations along with attention to our asset positions in Ark-La-Tex and the Permian Basin.”
Well Costs Fall & Forest Looks To Add Acreage
Well costs fell 10% in the third quarter to $5.75 million. The company expects additional savings through pad drilling, centralized production facilities, and continued optimization of completions.
Read more:Forest Oil - Schlumberger Sign Eagle Ford Development Agreement
Forest will transition to development drilling early next year once its acreage position is held-by-production.
Once acreage is held, Forest will focus on determining the optimal drilling density and well spacing for each area of the field.
Mr. McDonald further stated, “...We are presently seeking opportunities to add acreage to increase the scale of our Eagle Ford resource development opportunity.”
Read the full press release at forestoil.com