Forest holds approximately 112,000 gross acres (103,000 net) in the Eagle Ford Shale play. The reduction from 128,000 gross acres (118,000 net) is a result of allowing non held-by-production acreage in Lee County to expire, but Forest’s core acreage position in Gonzales and Wilson Counties of 101,000 gross acres (93,000 net) has been maintained. The area provides Forest access to the oil-bearing section of the Eagle Ford and has the potential to become a significant oil development opportunity through the application of advanced horizontal drilling and completion technologies.
Since Forest’s last earnings release, Forest successfully completed three horizontal Eagle Ford Shale oil wells (100% working interest) that had an average 24-hour production rate of 532 Boe/d. Two of these wells, drilled in the upper Eagle Ford, had an average 24-hour production rate of 604 Boe/d. A fourth well, also drilled in the upper Eagle Ford, experienced an unsuccessful completion due to a poor cement job. Remedial work is being performed to accomplish a successful completion of this well.