Capex Data
In May 2008, Forest announced a change to its oil and gas net sales volumes guidance based on increased expected capital expenditures of $1.15 billion to $1.25 billion for 2008. Capital expenditures were previously expected to be $900 million to $1 billion. The increased capital expenditures are expected to generate annualized organic production growth of approximately 15% beginning in the second quarter of 2008.
Future Plans
During 2008, Forest expects total net sales volumes of 189 to 193 Bcfe in 2008 up from 183 to 190 Bcfe previously disclosed. Subsequent to the first quarter of 2008, the Company expects net sales volumes to increase 5 to 6.5% sequentially in each of the second and third quarters, and to increase 3 to 4% sequentially in the fourth quarter. Forest estimates its net sales volumes will average 545 to 560 MMcfe/d in the fourth quarter of 2008. This expected net sales volumes increase includes the effects of the Ark-La-Tex acquisition as of today as well as the increased capital program. It does not consider the sale of any properties.