NEWS BULLETIN

October 26, 2001 --- Vol. 7, No. 135October 2001

Forest says Redoubt No. 3 well logged 436 feet of net pay

Forest Oil Corp. announced today the successful drilling and logging of a third well, Redoubt Unit No. 3, at the company's Redoubt development in Cook Inlet. Forest said the Redoubt No. 3 was drilled to extend the field and define the downdip limits of the reservoir in the south fault block discovered by the No. 2 well.

The No. 3 was drilled to a total depth of 16,940 feet and logged approximately 436 feet of net oil pay. The company said drilling extended the reservoir's downdip limit by approximately 300 feet without encountering the oil-water contact at total depth. Since logs indicated reservoir quality similar to the No. 2 well, the No. 3 was not production tested for oil.

Forest said it believes the No. 3 well will produce at rates similar to the No. 2.

Results from the Redoubt Unit No. 2 well were announced in June. The No. 2 was drilled to a total depth of 15,325 feet, logged approximately 452 feet of net pay and tested at a stabilized flow rate of 1,170 barrels of oil per day from two intervals in the Hemlock formation. Forest estimated that production rate for the well, using artificial lift, will be 3,000 bopd.

Forest also said that the No. 3 well also encountered a natural gas zone. Logs indicated approximately 40 net feet of gas pay, which was tested at 8.5 million cubic feet a day. The company said it is examining the implications of this natural gas discovery, but believes that, at a minimum, the natural gas will reduce field level fuel costs associated with oil production.

Forest expects to spud the No. 4 well within the next 30 days. That well will be an attempt to delineate the eastern boundary of the north fault block previously discovered by the No. 1 well. Full field development of Redoubt Shoal is under way, Forest said, with first production estimated to occur prior to 2003.

MMS issues draft EIS for proposed 2002-2007 oil and gas leasing

The Minerals Management Service said today that a draft environmental impact statement is available for the agency's proposed 2002-2007 outer continental shelf oil and gas leasing program.

Twenty oil and natural gas lease sales are proposed in the federal outer continental shelf between 2002 and 2007, including sales in the Gulf of Mexico's Western, Central and part of the Eastern planning areas; and Alaska's Beaufort Sea, Norton Basin, Cook Inlet/Shelikof Strait and the Chukchi Sea/Hope Basin.

Proposed Alaska sales by date: Sale 186 Beaufort Sea 2003; Sale 188 Norton Basin 2003; Sale 191 Cook Inlet/Shelikof Strait 2004; Sale 193 Chukchi Sea/Hope Basin 2004; Sale 195 Beaufort Sea 2005; Sale 199 Cook Inlet/Shelikof Strait 2006; Sale 202 Beaufort Sea 2007; and Sale 2003 Chukchi Sea/Hope Basin 2007.


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