Forest press release today

Forest issued a press release on their 2008 results and 2009 plans.

Two things jumped out:

(1) They will do very little work in the Utica in 2009. They are in no hurry since they have almost 10 years to develop the play. In the Haynesville and some of there other US shale plays, they have a limited amount of time to drill the wells based on the leasing structure or they will lose the claims. Therefore, they are focusing on the US claims. This is the problem Gastem/Junex will run into as they let Forest be the operator on some of their permits and Forest can take their good old time to develop it. Altai has the advantage of looking for the right partner who wants to drill now, not later.

(2) Forest is getting NYMEX minus $1.25 on their gas prices from the US whereas the Utica play will get NYMEX plus $1.00. This $2.25 price difference is what makes the Utica so attactive, especially if nat gas price remain low for a period of time.

stateside

http://biz.yahoo.com/bw/090203/20090203005508.html?.v=1