Forest Oil (FST) released its 2011 capital budget and has allocated $300 million to develop the Granite Wash formation on its properties in Texas. This represents 48% of its total capital budget for the year. The company plans to operate six gross rigs in the play, and drill sixty gross wells in 2011.
Forest Oil has 103,000 net acres prospective for the Granite Wash in the Texas Panhandle area. The acreage is located in six separate project areas: Mendota Ranch, Buffalo Wallow, Frye Ranch, Camp South, Kelln, and Canadian SE.