Forest Oil partners with Schlumberger on Eagle Ford shale land
BY BEN FOX RUBIN
DENVER -- Forest Oil inked a strategic partnership with Schlumberger to develop the Eagle Ford Shale land in Gonzales County, Texas, allowing for accelerated production growth and improvement of the project's economics.
Under the terms of the agreement, Schlumberger will pay a $90 million drilling carry in the form of future drilling and completion services and related development capital in order to earn a 50% working interest in Forest's Eagle Ford shale acreage position. Forest and Schlumberger will then participate in future drilling on a 50/50 basis.
Forest will be the operator of the drilling program and currently expects the drilling carry will be fully realized by the end of 2014 whereas Schlumberger will provide the technology, integrated services and capital resources needed for Forest to retain and develop a substantial portion of its acreage position.
Dow Jones Newswires