Forest Oil Reports 700% Production Replacement

Independent energy firm Forest Oil has reported record estimated proved reserves of 2,119 billion cubic feet equivalent replacing over 700% of production with finding, development and acquisition costs of $2.27 per thousand cubic feet equivalent.

Forest Oil reported adjusted earnings of $223.1 million, up 102% over 2006, on revenues of almost $1.1 billion. The company stated record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $871.4 million, up 69% over $516.5 million in 2006.

Forest Oil’s organic reserve replacement ratio was 236%, with finding and development costs of $2.21 per thousand cubic feet equivalent of gas and net sales volumes increased 50% to 149 billion cubic feet equivalent of gas.

Craig Clark, president and CEO, said: “The company had an excellent year with attractive results. The successful integration of Houston Exploration and sale of the Alaska assets significantly narrowed our operational focus and improved both the quality of our asset base and the inventory of undrilled locations to drive organic growth.”