Permian Oil and Gas

Forest Oil - Wolfcamp Shale Position

Forest Oil (FST) has a 51,000 net acre position that is prospective for the Wolfcamp Shale play. The company’s acreage is located in Crockett County, Texas.

Forest Oil plans to obtain core samples from vertical wells to help plan a horizontal development program here.  The company has drilled one pair of vertical and horizontal wells and recently started on a second pair.  Forest Oil plans a total of six wells through early 2012.

Conference Call Comments

“Our first horizontal Wolfcamp well, drilled with a lateral length of 5,000 feet is currently being fracked with 15 stages planned, and it is also being monitored with microseismic during the completion. Utilizing the micro seismic, the fracturing techniques had been altered on the fly by changing the perforation clusters and fracturing rates.”

“We have drilled the second of our vertical monitoring wells in a different portion of the Wolfcamp and we'll begin a horizontal outfit in the next couple of weeks. After drilling that horizontal, we will then move back and drill yet another horizontal offsetting our first monitor well as we continue to refine the stimulations of the Wolfcamp, which is over 700 feet thick. After the horizontals are completed, the vertical wells will be utilized to test other prospective pay zones that lie outside of the Wolfcamp sequence.”

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El Paso - Permian Basin Summary

El Paso (EP) is involved with the development of the Permian Basin and has 138,000 net acres in Reagan, Irion and Crockett Counties in Texas.  The company is pursuing the Wolfcamp formation on its properties and drilled three wells during the first quarter of 2011.

El Paso is currently operating two rigs in the play and is working in delineating the extent of the Wolfcamp on its acreage in the Permian Basin. The company estimates that it has 860 future drilling locations and risked resource potential of 155 million barrels of oil equivalent.  This estimate only pertains to the Upper Wolfcamp and the company has additional upside from the Lower Wolfcamp and other formations on its Permian acreage.

El Paso said that the Wolfcamp lies at a depth between 5,880 and 7,930 feet and is anywhere from 976 to 1,080 feet thick.  The porosity of the formation ranges from 9.4% to 12% and has a total organic content between 4 and 8.2.