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Corporate Update – Forest Oil Corp.

Forest Oil Corp. · Mar 31, 2014 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Update – Forest Oil Corp. – slide 1
    Corporate Update March 2014
  2. Corporate Update – Forest Oil Corp. – slide 2
    Forest Oil Snapshot Ark-La-Tex 234,000 Gross Acres Permian Basin Ark-La-Tex 162,000 Net Acres 2013 97 mmcfe/d 62,900 Gross Acres 2014E 105 mmcfe/d 60,250 Net Acres Permian Basin Eagle Ford 49,000 Gross Acres 24,500 Net Acres Eagle Ford…
  3. Corporate Update – Forest Oil Corp. – slide 3
    2013 Accomplishments Accelerated development of assets accomplished through joint development agreement with industry partner Benefit 1: Provided capital required to increase the level of drilling activity required to hold acreage…
  4. Corporate Update – Forest Oil Corp. – slide 4
    2014 Strategic Objectives Execution of East Texas drilling program Increased activity in East Texas focusing on liquids-rich and oil inventory Direct efforts to improve well results and lower average drilling and completion costs…
  5. Corporate Update – Forest Oil Corp. – slide 5
    2014 Guidance Production Guidance Guidance Revised guidance incorporates Low High increased Ark-La-Tex drilling Average Net Sales Volumes (mmcfe/d) 120 130 activity and a slower pace of % Natural Gas 65% development in the Eagle…
  6. Corporate Update – Forest Oil Corp. – slide 6
    Capital and Drilling Plan 2014 Average Rig Count by Area Total capital budget of 290 310 million Drilling capital of 260 - 270 million Ark-La-Tex, 20-25 gross wells Eagle Ford, 48 gross (24 net) wells Increasing activity in…
  7. Corporate Update – Forest Oil Corp. – slide 7
    Volumes Component Summary 2014 Production Growth Underpinned by Ark-La-Tex Activity Average Equivalent Production (mmcfe/d) Oil & Liquids Production (bbls/d) 148 7,300 114 114 111 109 107 5,507 3,611 1,848 1,507…
  8. Corporate Update – Forest Oil Corp. – slide 8
    Lower Cost Structure Lower Costs Projected Post Texas Panhandle Sale G&A Expense ( MM) Interest Expense ( MM) 150 44 44 44 142 120 29 62 2011 2012 2013 2014* 2011 2012 2013 2014* * Based on current mid-point of…
  9. Corporate Update – Forest Oil Corp. – slide 9
    Eagle Ford FOREST OIL CORPORATION 9
  10. Corporate Update – Forest Oil Corp. – slide 10
    Eagle Ford Overview 2013 drilling program focused on 49,000 gross (24,500 net) acres in Gonzales County, TX lease expirations and delineation 84% held through production drilling 550 gross locations remaining Geologic and geophysical…
  11. Corporate Update – Forest Oil Corp. – slide 11
    Eagle Ford Well Results Solid Early Results Across Acreage Position (2011 2013)* Tinsley-Raeke 01H 778 boe/d Bouldin Trust 01H 586 boe/d Tinsley-Lawley 01H 535 boe/d Bouldin Trust 02H 399 boe/d Tinsley 01H 410 boe/d Tinsley-Cook…
  12. Corporate Update – Forest Oil Corp. – slide 12
    Eagle Ford Target Zone J ZONE (Current Target) Target Zone Thickness MIDDLE 130 MEMBER LOWER No frac barrier False below this Buda thin zone FOREST OIL CORPORATION 12
  13. Corporate Update – Forest Oil Corp. – slide 13
    Eagle Ford Well Results 2013 Well Performance Compared to Type Curve 10,000 Eagle Ford Type-Curve (ESP): EUR 239 mbo (262 mboe) IP30 400 boe/d (91% oil) Well Cost Target 5.2 MM 1,000 ROR 35 - 40% (90 wellhead oil) bbls/d…
  14. Corporate Update – Forest Oil Corp. – slide 14
    2014 Eagle Ford Plan Net capital of 95 million to drill 48 gross (24 net) wells 29 million of drilling carry still outstanding at year-end 2013 Focus on areas where we have a higher degree of confidence in the geology, geophysical, and…
  15. Corporate Update – Forest Oil Corp. – slide 15
    Eagle Ford Well Costs 2011 & 2012 2013 Avg. Cost 8.1 MM Avg. Cost 5.9 MM 12.0 10.0 8.0 4Q - 5.6 million avg. 6.0 MM 4.0 2.0 0.0 Well Costs Continue To Trend Lower FOREST OIL CORPORATION 15
  16. Corporate Update – Forest Oil Corp. – slide 16
    Eagle Ford Well Costs Lowest Amongst Peers * 9.0 8.0 7.0 6.0 5.0 MM 4.0 3.0 2.0 1.0 0.0 FST '14E FST '13A Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer Group Average Further…
  17. Corporate Update – Forest Oil Corp. – slide 17
    Further Reductions in Well Costs Determine optimal number of frac stages Early results indicate fewer stages can yield similar production rates to wells with more stages Use of chemical diverter replaces the need for frac plugs and…
  18. Corporate Update – Forest Oil Corp. – slide 18
    Eagle Ford Economics Economic Sensitivity * Eagle Ford Type-Curve: 100 EUR 239 mbo (262 mboe) 90 IP30 400 boe/d (91% oil) Well Cost Target 5.2 MM 80 ROR 35 - 40% (90 wellhead oil) 70 60 ROR - % 50 40 30 20 10…
  19. Corporate Update – Forest Oil Corp. – slide 19
    Ark-La-Tex & Permian Basin FOREST OIL CORPORATION 19
  20. Corporate Update – Forest Oil Corp. – slide 20
    Ark-La-Tex Acreage Position Total Acreage* 234,000 Gross Acres Arkoma 162,000 Net Acres 61,000 Gross Acres 35,000 Net Acres East Texas 135,000 Gross Acres 103,000 Net Acres North Louisiana 10,000 Gross Acres 9,400 Net…
  21. Corporate Update – Forest Oil Corp. – slide 21
    East Texas Near-Term Drilling Focus Near-Term 4 Field Locations 3 1. Harrison / Panola Cos 100 1 2. Henderson ( Rusk Co. ) 20 3. Willow Springs ( Gregg Co. ) 15 2 4. Gilmer ( Upshur Co. ) 20 5 5. Walkers Chapel (…
  22. Corporate Update – Forest Oil Corp. – slide 22
    2014 Cotton Valley Development Plan McPhail 01H 7.7 mmcfe/d (30% liquids) Red Fox 01H 5.6 mmcfe/d (39% liquids) Cotton Valley program provides consistent and predictable drilling results Identified near-term inventory of 155…
  23. Corporate Update – Forest Oil Corp. – slide 23
    Cotton Valley Liquids-Rich Results Consistent Results 2012 - 2013 2012 - 2013 30-Day Avg. IP Rate of 8.5 mmcfe/d 39% Average Liquids 10.1 9.8 9.9 9.7 42% 41% 9.2 40% 40% 39% 39% 8.4 35% 35% 7.1 5.9 1Q12 2Q12 3Q12 4Q12…
  24. Corporate Update – Forest Oil Corp. – slide 24
    Cotton Valley Type Curve 2013 Well Performance Compared to Type-Curve 100,000 Cotton Valley Type-Curve (liquidsrich): EUR 6 bcfe (40% liquids) IP30 8 - 9 mmcfe/d Well cost 8.0 MM ROR 45% (90 oil / 4.50 gas) 10,000 mcfe/d…
  25. Corporate Update – Forest Oil Corp. – slide 25
    Cotton Valley Liquids-Rich Well Economics Economic Sensitivity 100 Cotton Valley Type-Curve (liquidsrich): 90 EUR 6 bcfe (40% liquids) IP30 8 - 9 mmcfe/d 80 Well cost 8.0 MM 70 ROR 45% (90 oil / 4.50 gas) 60 ROR - % 50…
  26. Corporate Update – Forest Oil Corp. – slide 26
    Permian Basin Provides Optionality Acreage position of 62,900 gross acres (60,250 net) located in Reeves and Pecos Counties Exposure to numerous oil objectives with both vertical and horizontal drilling opportunities Horizontal…
  27. Corporate Update – Forest Oil Corp. – slide 27
    Hedging Program Summary Provides Downside Protection for Cash Flow Derivative 2014 2015 Natural gas swaps (Bbtu/d) 70.0 50.0 Weighted average price (per MMBtu) 4.38 4.21 Natural gas collars (Bbtu/d) - 14.9 Weighted average…
  28. Corporate Update – Forest Oil Corp. – slide 28
    Attractive Debt Maturity Profile (MM) 1,000 Total Senior Notes: 800 million Average Rate: 7.3% Average Maturity: 5.6 Years 750 Revolver: 0 Rate: 1.8% 578 Maturity: 2.3 Years 7.25% 500 222 250 7.50% - 2013 2014 2015…
  29. Corporate Update – Forest Oil Corp. – slide 29
    Summary Balanced asset base that is concentrated in two core areas of the Ark- La-Tex and Eagle Ford Focused capital plan allows Forest to concentrate on higher margin oil and liquids-rich growth opportunities Multi-year inventory of…
  30. Corporate Update – Forest Oil Corp. – slide 30
    Forest Oil Corporation 707 Seventeenth Street, Suite 3600 Denver, CO 80202 303.812.1400 Website: www.forestoil.com FOREST OIL CORPORATION

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