Forest Oil Corporation Acquires Additional Interest in Katy Field

Strategic Insights -

Forest Oil Corporation has acquired an additional interest in the Katy Field, located in Harris County, Texas, from Amoco for $14.6 million. This acquisition has increased Forest's average working interest in the field from approximately 33% to approximately 49%. The addition of this interest is expected to boost net production from the field by 5-6 million cubic feet per day (mmcfe) to approximately 12.5 mmcfe per day. The Katy Field, operated by Exxon, has produced over 10 trillion cubic feet of natural gas from the Yegua and Wilcox formations.

Key Takeaways:

  • Forest Oil Corporation has acquired an additional interest in the Katy Field from Amoco for $14.6 million, representing approximately 17 billion cubic feet of equivalent natural gas reserves.
  • The acquisition increases Forest's average working interest in the field from approximately 33% to approximately 49%, resulting in a net production increase of 5-6 mmcfe per day.
  • The Katy Field, operated by Exxon, has produced over 10 trillion cubic feet of natural gas from the Yegua and Wilcox formations.
  • Forest believes there is additional potential in the field and plans to work with the operator to further develop the existing producing intervals and to identify deeper Wilcox exploration opportunities.
  • The company has a strong presence in North America, with principal reserves and producing properties located in the United States, including the Gulf of Mexico, Louisiana, Texas, Oklahoma, and Wyoming, as well as in Canada, including Alberta and the Northwest Territories.
  • Forest Oil Corporation's common stock trades on the New York Stock Exchange under the symbol FST.

Statistics:

  • Acquisition price: $14.6 million
  • Additional interest: approximately 17 billion cubic feet of equivalent natural gas reserves
  • Production increase: 5-6 mmcfe per day
  • Stated net production: approximately 12.5 mmcfe per day
  • Total gas production from Katy Field: over 10 trillion cubic feet

Sources:

  • Business Wire, "Forest Oil Corporation Announces Acquisition of Additional Interest in Katy Field," June 22, 1998