By OGJ editors
HOUSTON, Feb. 14 -- Forest Oil Corp. agreed to acquire producing assets, primarily in the Cotton Valley tight gas play in East Texas, from six private entities for $255 million total.
Proved reserves are estimated at 110 bcf of gas equivalent, with 43% proved developed and 90% gas. The Denver independent identified 300 drilling locations on 26,000 net acres being acquired. Closing is expected on Mar. 31.
H. Craig Clark, Forest's president and chief executive officer, said Cotton Valley wells require completion techniques similar to Forest's existing operations in Buffalo Wallow field of the Texas Panhandle and the Wild River area of Canada.
"Our plan is to continue a two-rig program in this area during 2006 and increase the work level to a four-rig program in 2007," Clark said.
