Enverus Blog

Insights across the energy value chain

I checked out the Forest Oil 1Q2011 earnings call a couple days ago hoping to gain some insight into a) current Granite Wash goings on and b) some new information regarding eastern Eagle Ford oil.  Forest Oil delivered as usual with some nice data points and insightful commentary.  First things first, Forest is pleased with their initial Eagle Ford results.  4 wells completed averaging about 780 BOEPD with 730 of it crude oil.  These wells exceeded type curve expectations thus far.  Forest talked a bit about the need for artificial lift on most of the planned wells as the gas drive is very weak.  One of their wells has produced 20 Mboe since it came online in March.

Something else interesting is their planned usage of “super laterals”.  We see these types of laterals in other unconventionals such as the Woodford (see Newfield) and Bakken but I do not believe I have seen this in the Eagle Ford.  Their previous Eagle Ford wells have lateral lengths of 3,400′ with 11 stage frac jobs.  Here are some other takeaways from the call.

– Forest will run 3 rigs and drill about 15 more Eagle Ford wells this year

– Well costs seem a bit high but they are in the early science stage, at $8MM per normal lateral, and about $12 MM per super lateral

– Their hydrocarbons are in crude form meaning they have not run into gas transportation limitations.  They truck it out, it’s somewhat costly but it is more timely.

Lets put the Forest program into some context with a map generated from, none other than Drillinginfo!  Here I used the Eagle Ford Unconventional Update to automatically restrict my search to the proper aerial extent.  For those with limited time on their hands, the Updates also contain one-click searches for each operator AND a nifty repository of press releases and non-regulatory data.  This stuff may seem designed for Drillinginfo power users, but it is free.  Free to all subscribers.

Forest Oil Gives Insight Into Eastern Eagle Ford OilThis map shows all Eagle Ford producers (regardless of company) and Forest Oil permits since 7/1/2010.  The permits are in blue.  That cluster of green wells in SE Gonzales county are the EOG Marshall and surrounding leases.  The Marshall lease is a nice crude oil data point and shows that the Forest wells are updip and (in my estimation) in a relatively, non-derisked area.  That being said, their release of 780 BOEPD intial production is certainly positive.  Forest has one producing well in our database, the first month production was 358 BO/D.  The first month is often very low compared to the second month so when that comes in I’ll post about it.

Keep checking back, if you have any ideas for blogs or things you are interested in, let me know via comment  or email.

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