Redoubt reserves set at more than 50 million barrels

Facilities would be designed to handle 20,000 barrels a day; Forest expects field to be in production next year

Kristen Nelson

PNA Editor-in-Chief

Forest Oil Corp. has announced the successful logging and testing of its second Redoubt unit well from the Osprey platform in Cook Inlet and has released an estimate of recoverable oil from Redoubt of more than 50 million barrels.

The company said June 19 that the Redoubt Unit No. 2 well extends the field into a southern fault block separate from the Redoubt Unit No. 1 discovery well, drilled last year.

Both wells were drilled from the Osprey platform. The Osprey was built for Redoubt exploration and set in Cook Inlet last summer. The platform was designed so that it could be moved if Redoubt drilling was not successful, and converted for production if drilling was successful.

Forest said the No. 2 well was drilled to a total depth of 15,325 feet and logged approximately 452 feet of net pay. The well tested at a stabilized flow rate of 1,170 barrels of oil per day from two intervals in the Hemlock formation. Utilizing pressure data gathered during the flow test, the production rate for the well is estimated to be 3,000 barrels of oil per day using artificial lift.

With the results of the No. 2 well, Forest said it now estimates that recoverable oil in Redoubt Shoal will exceed 50 million barrels. The company said it plans to spud the No. 3 well within the next 30 days to test the down dip limits of the Hemlock formation in the southern fault block.

At Dec. 31, 2000, Forest had reported 9.8 million barrels of estimated proved reserves at Redoubt Shoal.

Facilities would handle 20,000 bopd

Forest said the cost of field development drilling and facilities construction in 2001 and 2002 is estimated at $150-$175 million. Of this amount, approximately $58 million is included in the company’s previously announced planned capital expenditures for 2001. First production is presently planned for the end of 2002.

Forest Oil is engaged in the acquisition, exploration, development, production and marketing of natural gas and crude oil in North America and selected international locations. Forest’s principal reserves and producing properties are located in the United States in the Gulf of Mexico, Louisiana, Texas and Alaska, and in Canada in Alberta and the Northwest Territories.

Forest operates the West McArthur River field on the west side of Cook Inlet.