Premium land package----------------------------------------------------------------------------
Depth (ft) 2,300-6,000 4,500 - 9,000
Thickness (ft) 500 150 - 700
Clay Content (%) 15 - 26 15 - 30
TOC (%) 1.0 - 3.1 3.5 - 5.0
Gas-Filled Porosity (%) 3.2 - 3.7 3.0 - 4.8
Pressure Gradient (psi/ft) 0.45 - 0.60 0.46 - 0.50
Maturity (Ro) 1.3 - 2.0 1.0 - 2.2
Gas Price ($) NYMEX + 1.05 NYMEX - 0.53
As part of Forest's previously announced commitment to spent $10 million to earn a 60% interest in the 113,453 acre Yamaska licenses it confirmed it will drill two horizontal wells with a four-stage fracture stimulation per well in 2008. Forest estimates the wells will cost $2.5 million per well on an ultimate program basis.
Forest further reported its estimate of the discovered resource of 93 Bcf (15.5 mmboe) per section and unrisked potential of 1.3 - 2.2 Bcf/well (0.22 mmboe - 0.37 mmboe) representing recovery efficiencies of 15-25%. Using Forest's estimated spacing there could be approximately 800 wells on the Yamaska permits fully developed.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, "The Forest Oil press release and presentation today is an important endorsement of the shale gas potential of the Lowlands. Their program is still in the pilot stage but we agree the results are very encouraging. Questerre would hold approximately 350,000 net acres in the Lowlands after earning by Talisman and Forest. This compares quite favorably to Forest Oil's net acreage of 269,000 acres. As we were one of the first companies to recognize the potential of the Lowlands, we are confident that we have secured the premium acreage."