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HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp.

Forest Oil Corp. · Mar 18, 2013 · 27 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. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 1
    Howard Weil 41st Annual Energy Conference March 18-21, 2013
  2. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 2
    Forest Oil Snapshot Texas Panhandle Area Year End 2012 Proved Reserves 1.1 Tcfe* 10% East Texas 43% 47% Eagle Ford Shale Southern - Eagle Ford Shale Western - Texas Panhandle Area Eastern - East Texas / North Louisiana 4Q…
  3. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 3
    Executing on Strategic Objectives Exploit growing inventory of higher-return oil growth opportunities in three core development areas Develop multiple oil bearing intervals (Hogshooter & Tonkawa) of the Texas Panhandle Area…
  4. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 4
    2012 Accomplishments Sharpened operational focus to take advantage of oil opportunities - Pro forma oil net sales volumes increased 67% compared to 2011 - Pro forma oil reserves increased 27% compared to 2011 Texas Panhandle Area…
  5. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 5
    Oil Transformation Continues Production Reserves ( Bbls/d ) ( Mbo ) 8,000 35,000 7,000 30,000 6,000 25,000 5,000 20,000 4,000 30,440 5,880 7,500 15,000 3,000 22,834 10,000 2,000 3,088 3,521 9,114 11,147 5,000 1,000…
  6. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 6
    2013 Strategy Stay focused on large oil and liquids opportunity set within three core areas of the Texas Panhandle, Eagle Ford Shale, and East Texas Return to growth as second half of 2013 average net sales volumes are projected to be…
  7. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 7
    2013 Detailed Guidance Guidance Guidance Capital Expenditures & Guidance Guidance Production & Differentials Low High Expenses Low High Average Net Sales Volumes 220 230 E&D Capital Budget (MM) 315 325 (MMcfe/d) Total Capital Budget…
  8. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 8
    2013 Capital and Drilling Plan Rig Count by Area Total Capital Budget of 355 375 million Drilling capital of 320 330 million Operate 4 to 5 drilling rigs Drilling capital is only being allocated to higher-margin oil and liquids…
  9. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 9
    Focused Asset Portfolio Core portfolio provides large inventory of oil and liquids drilling opportunities Focused on higher-margin oil and liquids-rich opportunities Maintain gas optionality within East Texas / North Louisiana…
  10. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 10
    Texas Panhandle Presents Unique Opportunity Large database (700+ wells) creates unique and extensive knowledge base Upper oil zones complement deeper liquids-rich opportunities Sixteen intervals successfully developed (seven targeting…
  11. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 11
    Virgilian Texas Panhandle Area Opportunity Set Douglas Ss YE2011 YE2012 Wash Virgil Douglas Group Tonkawa Ss Geologic Interval Gross Gross Change Locations Locations Lansing Missouri Wash Cottage Grove Ss…
  12. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 12
    Full Development Plan Frye Ranch 3 6 3 4 Existing Missourian Wash 7 3 Existing Des Moines 19 17 11 Existing Granite Wash 2 6 Existing Atoka 8 1 4 3 8 Future Locations 1 1 20 4 21 19 Atoka 41 Missourian 7 Wash 2 113 3…
  13. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 13
    Texas Panhandle Area Oil Zones Hogshooter & Tonkawa Economics Hogshooter Well Economics EUR 450 Mboe (65% oil) Drill & Complete 8-9 million Initial 30-day average rate 1,500 Boe/d Initial 90-day average rate 900 Boe/d ROR1…
  14. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 14
    Concentrated Acreage Position Forest is one of the top acreage holders in the Texas Panhandle with KELLN approximately 100,000 net acres Significant running room in MENDOTA RANCH Hogshooter and other complementary oil horizons Have…
  15. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 15
    Texas Panhandle NGL Takeaway Improving DCP Midstream currently constructing Southern Hills Pipeline Panhandle Area Southern Hills provides increased optionality with access to better FST outlets Acreage Allows Forest to move its…
  16. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 16
    Eagle Ford Shale Oil Opportunity Forest currently holds 86,000 net acres within the black oil window Have implemented a plan to hold approximately 40,000 net acres in the Central Fairway of the play in Gonzales County 500 identified…
  17. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 17
    Eagle Ford Shale Development Well results are consistent with Forests type curve of 300 Mboe Completed two fourth quarter 2012 wells that had a 30-day average gross production rate of 515 Boe/d (94% oil) Fourteen 2012 wells had a 30-day…
  18. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 18
    Eagle Ford Shale Completion Optimization Current Completion 80-100 Thickness 7,500 8,000 Depth Eagle Ford Shale Interval Initial Completion FOREST OIL CORPORATION 18
  19. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 19
    Eagle Ford Shale Production vs. Type Curve Central Fairway Well Results 80,000 70,000 60,000 Cumulative Production (Boe) 50,000 40,000 Eagle Ford Shale Well Economics 30,000 EUR 300 Mboe (90% oil) Drill & Complete 6…
  20. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 20
    Eagle Ford Shale Maximizing Efficiencies Rig walking system introduced during 2012 for multi-well pad drilling Pad drilling results in improved efficiencies and other synergies Four-well pad can be drilled in 65 days as compared to four…
  21. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 21
    Eagle Ford Premium Pricing Platts LLS vs. NYMEX WTI * Gross 1st Month Revenue Comparison * 140 1,700 130 1,600 1,500 120 1,400 110 1,300 100 1,200 90 1,100 80 1,000 Standard Eagle Ford Well FST Eagle Ford Well 70…
  22. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 22
    Economic Sensitivity of Eagle Ford Very Good Economics & Value at Current Prices* * Base case: EUR of 300 Mboe and 500 Boe/d initial 30-day average rate FOREST OIL CORPORATION 22
  23. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 23
    East Texas Liquids Rich Play Total acreage position of 152,000 gross acres (111,000 net) in East Texas; 30,000 net acres within the liquids-rich trend FST targeting liquids-rich Cotton Valley and other oil objectives Recently…
  24. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 24
    Attractive Debt Maturity Profile (MM) 12/31/2012 Debt Profile 12/31/2012 1,200 Pro Forma 1,000 Maturity (years) 6.6 7.7 7.25% 1,000 800 500 600 7.50% 400 200 300 65 L + 5.89%1 LIBOR 0 2013 2014 2015 2016 2017…
  25. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 25
    Hedging Program Summary Opportunistically Adding to Hedge Position Derivative 2013 2014 2015 Natural gas swaps (Bbtu/d) 160 80 - Weighted average price (per MMBtu) 3.98 4.34 - Oil swaps (MBbls/d) 4.0 - - Weighted average price (per…
  26. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 26
    Investment Highlights Quality asset base with dominant operating position in Forests three core areas Focused capital plan allows Forest to concentrate on higher return oil and liquids-rich growth opportunities Deleveraging plan has…
  27. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Forest Oil Corp. – slide 27
    Forest Oil Corporation 707 Seventeenth Street, Suite 3600 Denver, CO 80202 303.812.1400 Website: www.forestoil.com Investor Relations Contact: Larry Busnardo, Director Investor Relations Phone: 303.812.1441 Email:…

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