Forest holds approximately 184,000 gross acres (111,000 net) and is currently running 5 rigs in the Texas Panhandle Area.
Since Forest’s last earnings release, the Company completed two horizontal Granite Wash wells (94% working interest) that had an average 24-hour initial production rate of 13 MMcfe/d, including approximately 1,400 Bbls/d of oil and natural gas liquids or 64% of total equivalent production.
Additionally, the Company completed one Missourian Wash well (100% working interest) that had a 24-hour initial production rate of 650 Boe/d. This well was completed with a shorter lateral, testing the areal extent of the Missourian Wash interval.
Forest completed its first Tonkawa well during the first quarter of 2012. The Tonkawa well (89% working interest) had a 24-hour initial production rate of 1,640 Bbls/d of oil, 200 Bbls/d of natural gas liquids, and 1.6 MMcf/d of natural gas, for a total equivalent rate of 2,100 Boe/d.Forest has initially identified 63 Tonkawa potential locations, with additional acreage being reviewed for prospectivity.
The Company experienced production curtailments in the Texas Panhandle Area related to a downstream NGL plant outage and to third party compression issues, which together resulted in a reduction of net sales volumes of approximately 9 MMcfe/d during the quarter. The plant outage was due to a NGL storage facility leak at the Oneok Medford plant, which resulted in a reduction of Forest’s net quarterly sales volumes of approximately 6 MMcfe/d. The production curtailment associated with the plant outage has been fully restored. An additional 3 MMcfe/d of the curtailment was associated with third-party high line pressure issues. In order to reduce this curtailment, Forest has installed loop lines, compression, and has transitioned a portion of its production in this area to a new gas gatherer.