Enverus Blog

Insights across the energy value chain

On March 18, Forest Oil held their Analyst Day Conference and boasted that “If you want exposure to the Granite Wash, You must own Forest.” The reasons being are that they have a large, diverse position with exposure to the high liquids area, they have data points for over 600+ wells in the area, and they believe strongly in their ability to drill successful horizontal wells.  Below is a map showing Forest’s Granite Wash producing wells.  They have other data points in JVs and other horizons.

“If you want exposure to the Granite Wash, You must own Forest”

They are claiming 7.2 Bcfe/well in the South Fairway that includes the more liquids rich stream.  Some other economics for the area are (at $6 gas and $70 oil) ROR of 261%, Payout in 1.3 years, Net F&D of $.97/Mcfe with an average gross cost of $7MM/well.

Here is Forest’s recent Granite Wash production.

“If you want exposure to the Granite Wash, You must own Forest”

Another interesting point is that Forest only recently began drilling horizontal wells, in fact they only have about 7 horizontal Granite Wash wells at this point.  Below is a chart showing how the Granite Wash has been dominated by vertical production and only now are companies beginning to drill horizontally.

“If you want exposure to the Granite Wash, You must own Forest”

We keep track of the latest Granite Wash news and information in the Granite Wash Unconventional Update available to all Drillinginfo users.

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Justin Birmingham

Justin Birmingham is a Research Analyst at Drillinginfo. He creates proprietary research studies, works with statistical models and manages datasets for the DI Analytics team. Justin earned his Bachelor of Science from Texas State University – San Marcos.