Tuesday, November 2, 2010

A Quickie From Forest

In its earnings release today, Forest Oil was largely silent on its Haynesville Shale operations.  The company has three "core" areas in Red River Parish, Sabine Parish and Shelby Co./Panola Co. along with Cotton Valley/Haynesville acreage in Harrison, Gregg and Rusk Counties.  The company announced that it does not plan to operate a rig in the play for the rest of 2010.  It declared that its acreage in Red River Parish is now held by production, but it did not mention progress in its other core areas.

Forest did note that the company has started using the restricted choke technique to optimize gas recoveries and has completed its most recent three wells with restricted chokes.  While it provided little detail, the company has observed that after 90 days cumulative production from the restricted wells exceeded that from the unrestricted wells.  Not bad.

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