Forest Oil Corp., Denver, (NYSE: FST) reports it has increased its acreage position in East Texas and northern Louisiana to approximately 143,000 gross acres (113,000 net) through acquisitions and leasing with approximately 114,000 gross acres (90,000 net) prospective for the Haynesville and Bossier shale trends.

The majority of Forest’s acreage is in Harrison County, Texas, and Red River, Webster and Bienville parishes, Louisiana. The company estimates the net unrisked potential in addition to proved reserves is 5 trillion cubic feet equivalent in the Haynesville and Bossier formations and 5.8 trillion including Cotton Valley, Petit and Travis Peak activity.

Forest recently acquired approximately 69,000 gross acres (47,000 net) in the Ark-La-Tex region prospective for Haynesville shale from George Baldwin’s Houston-based EnSight Energy Partners III LP for $285 million in cash.

Forest’s current production in the region is 75- to 80 million cubic feet equivalent per day. The company expects to exit 2008 at 85- to 90 million per day.

It currently has 10 to 15 vertical wells drilled to the Haynesville/Bossier formations and two to three horizontal wells into the trend. It plans to have 13 rigs running over the region by year-end 2008, with two targeting the Haynesville/Bossier.

H. Craig Clark, Forest president and chief executive, says, “Forest is well positioned to capitalize on the developing Haynesville/Bossier shale play which has been identified as prospective on our acreage. Our strategy in this shale will be similar to the one deployed in our highly successful horizontal development program being utilized in the Cotton Valley sands.”

Forest’s Cotton Valley horizontal program has produced excellent results with initial producing rates ranging from 3.3- to 7.8 million cubic feet per day, he says. Forest intends to employ a vertical pilot program in 2008 that includes 10 to 15 wells to test the Haynesville/Bossier shale to identify potential horizontal targets.

He adds the company will follow with a combined vertical and horizontal program to optimize the economics in the play, implementing a two- to three-well Haynesville/Bossier horizontal program in fourth-quarter 2008 based on pilot program results.

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