Transcript Document

Forest Oil Corporation
Granite Wash Conference
Oklahoma Geological Society
March 6, 2008
Why the Granite Wash?
 Simple, repeatable play
 Low risk
 Ability to build large drilling inventory
 Low F&D costs
 Ease of permiting, welcoming community for oil & gas
 Gas markets: quick hook-ups, full takes, low basis differential
 Successively deeper pays add to EURs at low incremental
capital costs
2
Forest Oil Corp - Texas Panhandle History
 Forest acquires 33,000 gross
H&GNRR, BLK A2
AB&M, BLK 4

G&MMB&A, BLK C
H&GNRR, BLK M1
BLK Z1
BS&F
H&GNRR, BLK M1

R&E, BLK RE

BLK C
BLK E
B&B, BLK 3
BLK E
Mobeetie
H&GNRR, BLK A5
B&B, BLK 4
B&B, BLK 5

acres in March 2005.
Acreage increased to 51,000
acres in 2007.
Forest has drilled about 150
Granite Wash wells since April
2005.
Buffalo Wallow approved for and
being drilled on 20 acre
downspacing
Frye Ranch approved for 40 acre
spacing.
H&GNRR, BLK A4
H&GNRR, BLK A3
Wheeler
3
Forest Oil Corp – Hemphill & Wheeler County Production
100,000
Forest Oil Corp Operated
Hemphill and Wheeler Co. TX
Daily Rate
10,000
1,000
100
10
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Tim e
April 2006
4
Forest Oil Corp – Buffalo Wallow Field: Drill & Complete Costs
Buffalo Wallow Drill & Complete Costs
4500
4000
3500
Gross M$
3000
2500
2000
1500
1000
500
0
1
11
21
2005
31
41
51
61
2006
71
81
91
101
2007
5
Forest Oil Corp – Buffalo Wallow Field: Days from Spud to Sales
Buffalo Wallow Days from Spud to Sales
Days from spud to sales
125
100
Average 42 days
75
50
25
0
1
11
2005
21
31
41
2006
51
61
71
81
91
101
2007
6
Forest Oil Corp – exploitation of deeper Granite Wash pays
P E TRA 12/9/2004 1:30:04 P M
1 0
0
Caldwell
1 1
11,000
1 1
1 0
0
HS =1
Britt
GW-A
Initially operators in Buffalo Wallow
completed the Caldwell, Britt and
GW-A only
0
5 0
GW-B
1 1
6 0
0
1 1
11,500
1 1
5 0
0
1 1
4 0
0
1 1
4 0
0
1 1
3 0
0
00111
1 1
3 0
0
1 1
002211 0
0
00311
1 1
2 0
0
1 1 1 0 0
HS =1
GW-C
8 0
0
1 1
7 0
0
1 1
7 0
0
1 1
6 0
0
PE TRA 12/7/2004 6:04:55 PM
Operators then completed thru the
GW-B and GW-C
1 1
8 0
0
1 1
11 40 0
9 0
1 1
0
9 0
1 1
12,000
0
11 50 0
1 2
0 0
0
1 2
0 0
0
11 60 0
GW-E
1 2
3 0
0
GW-F
1 2
3 0
0
HS =1
PE TRA 12/7/2004 5:50:22 PM
12,500
1 2
2 0
0
1 2
2 0
0
1 2
1 0
0
1 2
1 0
0
11 70 0
1 2
4 0
0
1 2
4 0
0
12 10 0
0
7 0
Forest determined that additional economic
net-pay exists in the GW-E, F & Atoka and it now selectively
completes in those zones as well
0
1 2
Atoka
1 2
7 0
13,000
1 2
6 0
0
1 2
6 0
0
1 2
5 0
0
1 2
5 0
0
12 20 0
HS =1
1 3 2 0 0
1 3 2 0 0
13,500
1 3 1 0 0
1 3 1 0 0
1 3
0 0 0
1 3 0 0
0
1 2
9 0 0
1 2 9
0
0
1 2
8 0
0
1 2
8 0
0
PE TRA 12/7/2004 6:01:39 PM
7
Forest Oil Corp – Buffalo Wallow Completion
8
Liquid Loading
Granite Wash Conference
Oklahoma Geological Society
March 6, 2008
9
Liquid Loading-Pumping Unit Well
S
O
Date
N
D
J
F
M
A
M
J
J
A
S
O
N
GAS-MCF/day
1000
10
1
100
10000
OIL-BBL/DAY
10000
1000
10
1
100
10000
1000
100
10
100
2006
A
1000
J
10000
J
100000
M
0.1
A
1
M
10
F
100
1
1e+06
1000
J
0.1
D
1
2005
N
Tbg Pres
Ref=
Cum=
WGR B
Ref=
Cum=
10
O
OIL-BBL
Ref=
Cum=
Csg Pres
Ref=
Cum=
100
S
GAS-MC
Ref=
Cum=
WATER
Ref=
Cum=
1000
A
WGR BBL/MMCF
Tbg Press
CXS_GASDAY
Csg Press
B U F F A LO W A LLO W
G R A N I T E W A S H U P R / LW R / A T K
F OR EST OIL C OR POR AT ION
F APIM N R BGX
T X H E M P H I LL
- Install Pumping Unit 2/1/06 320-256-120
WATER-BBL/DAY
VISE #14-52
2007
10
Liquid Loading-Pumping Unit Well
GAS-MCF/day
OIL-BBL/DAY
1000
10
1
100
10000
1000
10
1
100
10000
1000
10
1
100
10000
2006Date
A
S
O
N
D
J
F
M
A
M
J
J
A
S
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100
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1000
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10000
M
100000
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1e+06
M
0.1
F
1
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10
D
100
N
1000
O
0.1
2005
S
1
A
Tbg Pres
Ref=
Cum=
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Ref=
Cum=
10
J
OIL-BBL
Ref=
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Csg Pres
Ref=
Cum=
100
J
GAS-MC
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WGR BBL/MMCF
Tbg Press
CXS_GASDAY
Csg Press
B U F F A LO W A LLO W
GR AN IT E W ASH U PR
F OR EST OIL C OR POR AT ION
F 6LE R N R 9Y P
T X H E M P H I LL
- INSTALL PUMPING UNIT 640
WATER-BBL/DAY
PEAK-BOURASSA # 3-7
2007
11
Liquid Loading-Cap String Well
GAS-MCF/day
1000
10
1
100
10000
OIL-BBL/DAY
10000
1000
10000
100
100
10
1000
0.1
1
10000
1
1000
100000
10
Oct
100
Sep
0.1
Aug
1
100
1e+06
1000
Tbg Pres
Ref=
Cum=
WGR B
Ref=
Cum=
10
10
OIL-BBL
Ref=
Cum=
Csg Pres
Ref=
Cum=
100
1
GAS-MC
Ref=
Cum=
WATER
Ref=
Cum=
1000
Jul
WGR BBL/MMCF
Tbg Press
CXS_GASDAY
Csg Press
B U F F A LO W A LLO W
GR AN IT E W ASH U PR
F OR EST OIL C OR POR AT ION
F 8R L9J V 57A
T X H E M P H I LL
- INSTALL CAP STRING 8-13-07
WATER-BBL/DAY
PEAK-WALSER 29 #14
2007
Date
12
WESTERN BUSINESS UNIT
Liquid Loading-Cap String Well
GAS-MCF/day
1000
10
1
100
10000
OIL-BBL/DAY
10000
1000
10
100
10000
1
100
1000
1000
0.1
100
10000
1
10
100000
10
Oct
100
1
1e+06
1000
Sep
0.1
Aug
1
Jul
Tbg Pres
Ref=
Cum=
WGR BB
Ref=
Cum=
10
Jun
OIL-BBL
Ref=
Cum=
Csg Pres
Ref=
Cum=
100
May
GAS-MC
Ref=
Cum=
WATERRef=
Cum=
1000
Apr
WGR BBL/MMCF
Tbg Press
CXS_GASDAY
Csg Press
B U F F A LO W A LLO W
G R A N I T E W A S H U P R / LW R / A T K
F OR EST OIL C OR POR AT ION
C A 4L6O 29G 320
T X H E M P H I LL
- INSTALL CAP STRING 7-25-07
WATER-BBL/DAY
VISE # 5A-52
2007
Date
13
Liquid Loading-Cap String Well
GAS-MCF/day
1000
10
1
100
10000
OIL-BBL/DAY
10000
1000
10
1
100
10000
1000
100
100
1000
10
10000
Sep
100000
1
1e+06
Aug
0.1
Jul
1
Jun
10
May
100
Date
Apr
1000
Mar
0.1
Feb
1
Jan
Tbg Pres
Ref=
Cum=
WGR BB
Ref=
Cum=
10
2006
Dec
OIL-BBL
Ref=
Cum=
Csg Pres
Ref=
Cum=
100
Nov
GAS-MC
Ref=
Cum=
WATERRef=
Cum=
1000
Oct
WGR BBL/MMCF
Tbg Press
CXS_GASDAY
Csg Press
F R YE R AN C H
G R A N I T E W A S H U P R / LW R
F OR EST OIL C OR POR AT ION
F C B 283G 4D O
T X W H E E LE R
- INSTALL CAP STRING 6-20-07
WATER-BBL/DAY
FRYE, HARRY T. #16-10
2007
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Liquid Loading-Weatherford CVR System
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