Forest Oil announces $600-650 million budget for 2011

By OGJ editors
HOUSTON, Jan. 21
-- Forest Oil Corp. announced a 2011 budget of $600-650 million, saying 80% of the budget will be allocated to liquids-rich plays such as the south Texas Eagle Ford oil play and the Granite Wash liquids-rich assets in the Texas Panhandle.

The rest of the budget will be allocated primarily to gas development in the Deep basin of Alberta, Forest said. The Denver company’s total 2011 budget represents a decrease of 10% compared with its 2010 budget. Its 2011 drilling program primarily will involve horizontal drilling, executives said.

H. Craig Clark, Forest president and chief executive officer, said the Granite Wash play is expected to receive about half of the 2011 budget. Forest Oil plans to use six horizontal rigs in that play, he said.

“We will allocate about one-third of our budget to Canada, focusing on the Deep basin in our Nikanassin resource play and in the Peace River Arch in our Evi light-oil play,” Clark said. Forest intends to transition the Nikanassin play to horizontal development during 2011 and to expand horizontal drilling in Evi field.

Forest Oil initially intends a 1-2 drilling rig program in its Eagle Ford oil acreage in the Texas counties of Gonzales and Wilson.

Related Articles

Declining costs enhance Duvernay shale economics

09/01/2014 Alberta's Duvernay play is often characterized as Canada's Eagle Ford and is similarly seen as one of the most economically attractive plays in Nor...

BHI: US rig count recoups last week’s losses, jumps to 1,914

08/29/2014 The US drilling rig count jumped 18 units to reach 1,914 rigs working, gaining back the 17 units it lost last week plus one, during the week ended ...

Eagle Ford water recycling thrives following change in Texas Railroad Commission rules

08/13/2014 Amidst the worst Texas drought since the National Drought Mitigation Center's record keeping began 119 years ago, operators in Texas' Eagle Ford sh...

Report pegs average Eagle Ford shale EUR at 168,000 bbl/well

08/13/2014 The average estimated ultimate recovery (EUR) of wells drilled during 2008 through mid-2013 in the Eagle Ford shale in South Texas was 168,000 bbl/...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected