Forest takes write-down in Canadian gas reserves

Gary Park

Petroleum News Calgary correspondent

Canadian Forest Oil joined the growing list of companies to shrink its Canadian reserves, reducing its natural gas holdings to just under 118 billion cubic feet entering 2004 from 135 billion cubic feet a year earlier.

In a 10-K filing by its parent company, Forest Oil, with the U.S. Securities and Exchange Commission, the Canadian unit said its gas reserves took a negative revision of 19.14 bcf in 2003, while production totaled 12.61 bcf, more than offsetting extensions and discoveries of 14.65 bcf.

However, proved liquids reserves in Canada edged up to 7.25 million barrels from 6.91 million at the end of 2002.

Canadian Forest reported 39 gross wells in 2003 with a 95 percent success rate.

Gas sales volumes for the year averaged 34.6 million cubic feet per day, down from 37 million in 2002, while full-year liquids sales averaged 2,800 barrels per day, off 400 bpd from the previous year.