Forest Oil Corporation

From Wikimarcellus

Denver, Colorado-based Forest Oil Corporation (FST) has a leasehold of 330,000 gross acres in Quebec's Utica shale play in the Saint Lawrence Lowlands.

Forest has a pilot Utica shale drilling program consisting of three horizontal wells. According to a February, 2009 report, these underwent successful slickwater fracs during the forth quarter of 2008. Each well targeted a different section of the Utica shale and was located in a different geographic location. After undergoing four stage fracs, these three experimental wells produced between 100 and 800 Mcf/d of natural gas.

The company's Utica shale program is conducted through Canadian Forest Oil Ltd. (CFOL), a wholly owned subsidiary of Forest Oil. It has drilled two horizontal wells at St-Francois and St-Louis on the Yamaska Property in the Saint Lawrence Lowlands, Quebec, Canada. Forest's Utica shale program on Yamaska covers approximately 112,000 acres. Its 10 year exploration licenses for the property are good until 2016. Gastem, Junex and Questerre Energy Corporation are all partners in this development. In December, 2010 the ownership of Canadian Forest Oil was transferred to a Forest Oil spin-off called Lone Pine. Forest planned to make a public offering (IPO) of 19.9% of Lone Pine's common stock.

A press release in December, 2009 announced that Forest had concluded a drill-to-earn agreement with Junex Inc whereby it was to drill a horizontal Utica shale well to earn a 60% working interest in the 55,240 acre Richelieu North Permit. It is located in the Contrecoeur area, approximately 35 miles northeast of Montreal on the south shore of the St. Lawrence River. Forest was to spend $4 million drilling a vertical pilot well there in early 2010, acquire and analyze well bore data, and follow up by drilling a horizontal well during the summer of 2010. This agreement was for a working interest in Utica shale only--Junex reserved the Trenton-Black River interval and other geological formations for itself.

According to a December, 2010 press release, Forest had successfully earned its 60% working interest in the Utica and Lorraine shales on the Richelieu North Permit by drilling the St-Denis No. 1 vertical well. The purpose of this was to set up stratigraphic control to guide the drilling and completion of a follow-up horizontal well.

• H. Craig Clark is President and CEO of Forest Oil.
• David H. Keyte is Executive Vice President and CFO.
• J.C. Ridens is Executive Vice President and COO.