Since Forest's last earnings release, one Missourian Wash Hogshooter well (63% working interest) was completed with a 24-hour maximum production rate of 1,500 Bbls/d of oil, 570 Bbls/d of NGLs, and 4.4 MMcf/d of natural gas, for a total equivalent rate of 2,800 Boe/d (54% oil). To date, the Company has completed five Hogshooter wells that have had an average 24-hour maximum production rate of 3,050 Boe/d.
Forest also continues to have success in its Cleveland oil program. Since the Company’s last earnings release, two wells (88% working interest) were completed in the Kelln field of the Panhandle Area with an average 24-hour maximum production rate of 1,000 Boe/d (71% oil).
By the fourth quarter of 2012, Forest plans to further reduce its operated rigs from four to two in the Panhandle Area. These rigs will target the Hogshooter and other higher-return oil intervals.
Eagle Ford ShaleForest holds approximately 112,000 gross acres (103,000 net) in the oil-bearing section of the Eagle Ford Shale play. Drilling in the Eagle Ford is focused in the central fairway of Forest’s acreage position, where the Company has experienced the most consistent results and has the largest, most contiguous block of acreage. As highlighted in the Company’s July 9 th press release, Forest has initiated a development plan that should allow the Company to hold approximately 40,000 net acres over the next several years by employing a two-rig drilling program. Importantly, this acreage position has 500 total locations identified based on 80-acre spacing. The Company will look to monetize a portion of the remaining acreage through small divestitures or farm-outs. Since the recent Eagle Ford operational update on July 9 th, the Company has completed one additional horizontal well (100% working interest), which reached a 24-hour maximum production rate of 907 Boe/d (98% oil). East Texas / North Louisiana - Cotton Valley & Haynesville / Bossier Shale Forest holds approximately 163,000 gross acres (123,000 net) in the East Texas / North Louisiana area.