GROWING THE OIL IN FOREST Baird 2012 Growth Stock Conference May 9, 2012 FOREST OIL CORPORATION
Forest Oil Snapshot Corporate Summary 1.3 Billion Market Capitalization: ( 05/04/12 ) Panhandle 3.0 Billion Enterprise Value 12/31/11 Est. Proved Reserves of 1.9 Tcfe East Texas 55% Proved Developed / North Louisiana R/P Ratio 16…
1Q12 Highlights & 2012 Strategy 1Q12 Highlights 2012 Strategy Panhandle Area oil drilling program Test additional zones in our bread continues to yield results with and butter multi-stacked pay successful Missourian Wash and plays in…
Focused Plan For 2012 Estimated 2012 total capital budget of 585 Rig Counts In Core Areas 635 million (E&D capital budget of 480 520 million) Majority of 2012 E&D capital allocated to organic production growth engines in the…
Portfolio Focused Prospect Inventory PUD Other Unrisked Lantern Land Access & PUD Liquids Area Net Acres Reserves Identified Potential* Drilling Infrastructure (December 31, 2011) Locations Target (December 31, 2011) (Net Bcfe)…
Revenue & Production Transformation 2008 1Q12 Revenue & Production Mix* ( % Revenues ) ( % Oil & Liquids Production ) Oil & Liquids Account for 70% of Revenues and 32% of Volumes * Pro forma for Lone Pine Resources spin-off and…
Limited Near-Term Exposure to Nat Gas 32% of current production consists of oil and natural gas liquids Active hedging strategy helps protect cash flow and provides downside protection Only 30% of equivalent natural gas volumes…
Panhandle: Unique Knowledge Base Panhandle Geologic Zones Knowledge Based Exploitation P Douglas Large database (700+ wells) creates unique and extensive e n Tonkawa Missourian Wash knowledge base of stacked-pay sands that provide…
Panhandle Oil Zones Operated Results Ochiltree Lipscomb Cleveland / Tonkawa Zone Gross Gross Gross Oil* Gas* Equivalent* ( Program ( Bbls/d ) NGLs* ( Boe/d ) Average ) ( Bbls/d ) ( MMcf/d ) KELLN Undisclosed Hemphill Missourian…
Panhandle Granite Wash Operated Results Ochiltree Lipscomb Wells Gross Gas* Gross Liquids* Equivalent* ( Program Average ) ( MMcf/d ) ( Bbls/d ) ( MMcfe/d ) KELLN 54 8.7 1,764 19.2 Hemphill CANADIAN SE Granite Wash B zone…
East Texas Liquids Play Stacked-Pay Advantage Total acreage position of 147,000 gross acres (110,000 net) in East Texas prospective for oil and liquids-rich objectives Legacy acreage position held by production with low cost of…
Eagle Ford Shale: Oil Window Position Validate Targeting different sections of Eagle Ford Shale (lower to upper) to increase IPs and EURs while decreasing completion costs Initial production rates improving as new stimulation…
Permian Basin Oil Plays New Oil Plays Overview Total acreage position of 126,000 gross acres (114,500 net) in the Permian Basin Delaware Central Midland prospective for the Wolfbone and Wolfcamp Basin Basin Basin oil plays…
Sum Of The Parts Valuation Recent Transaction Values Low Valuation High Valuation Asset Amount Range (MM) Range (MM) Low High December 31, 2011 BT PV-10 2,800 2,800 Panhandle Net 115,000 5,000 / Acre 10,000 / Acre 575 1,150…
Forest Investment Proposition Focus on profitable organic growth spending capital in oil and liquids-rich areas in 2012 Deep oil and liquids inventory that continues to expand Proven success in horizontal drilling with improved…