A nice headline but the real news for us Utica Shale investors was the so-so results on the Utica Shale horizontal drilling as stated in the release:
Utica Shale (60 – 100% WI) – Forest drilled and completed the first three horizontal Utica Shale wells in Quebec's St. Lawrence Lowlands, which were successfully cased and fracture stimulated in four stages with rates ranging from 100 – 800 Mcf/d. Frac load flowback was incomplete due to the lack of coiled tubing units in the area. Forest expects to continue to test its wells after the winter season is over. Although sustained rates were not as high as anticipated, the tests have allowed Forest to identify the section of the shale it intends to target in future test wells. Each of the wells were tested in different sections of the Utica Shale with an objective of gathering data on productivity to allow optimization of future completions. Furthermore, Forest proved the ability to successfully drill the wells horizontally and pump multi-stage slickwater frac jobs without major operational issues.
http://finance.yahoo.com/news/Forest-Oil-Announces-Record-bw-14444018.html
Hopefully on the call, we'll get some clarification on which sections of the Utica were better than the others (shallow vs deep). Although an initial disappointment, we will hopefully hear better news from Talisman next week on their testing.
4 comments:
With these kind of numbers is there any hope that any major will invest in the QC shale plays or is it game over.
I think we need to hear what Forest has to say and also see what Talisman says next week. Talisman may be farther along in perfecting their drilling methods.
Qec came up with numbers and they did not please the market. I realized it is still early in the play but don't you find the sp depressing after seing stocks at $8 coming back to $1 and I don't even talk about my biggest holding ATI wich was trading at almost $4 and is now barely hanging to the .20 Not complaining but this is enought to consider buying bonds instead of stocks.
Hi,
Yes the share prices are depressing but they are approaching cash value of these companies so the downside is limited (not much consolation). I'm looking for nat gas to turn in 6 months and in the mean time I'm putting all new funds to work in the gold and silver juniors. At $4 nat gas, there is no hurry to add new money into these companies but I wouldn't sell at these prices either.
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