Tomahawk, WI 2/27/2014 (Basicsmedia) – Forest Oil Corporation (NYSE:FST) seems to be gripped in panic selling looking at its recent drops. So then, what about how you should trade this stock? That is answered, click on the link below.

Forest Oil Corporation (NYSE:FST), with more than $240 million in market cap, is known as a company with deep-rooted interest in oil and gas industry. The company is engage in several activities in the industry which touch on acquisition, exploration and production of oil and gas in North America.

The company was expected to take up more drilling projects in Eagle Ford this fiscal year. Basically that was to help in boosting revenue and profits with the ultimate bottom line of improving shareholder value. However, the plan to increase production on Eagle Ford is being perished as the company waits to consume for important data related to the project.

While the company has confidence on the data it is already having on the other areas of Eagle Ford, the southern area is still not adequately understood. So then that is the reason the company has decided to pull back on production as had earlier been planned and announced.

Waiting to analyze data

Forest Oil Corporation (NYSE:FST) has announced that there will be nothing to stand between it and its production targets on southern Eagle Ford once it complete to analyze the seismic data on the area. That means that production on the southern part of Eagle Ford can only start in the fourth quarter.

That is when the new data on the seismic surveys would have been analyzed. Basically the significance of the awaited data is to help the company to avoid regions that have extreme faulting possibility.

Reduced drilling activity

Forest Oil Corporation (NYSE:FST) had initially expected to bring up about 40 new wells in the Eagle Ford shale online in 2014. But that is not possible now given that production in southern region of the shale will not happen until the third quarter. So then, the company has reduced its new wells target to 24, just about half of the previous target.

Alongside that reduction on the number of new wells to be commissioned, Forest Oil Corporation (NYSE:FST) has also reduced its new wells budget. Instead of the initially tagged spending program of $270 million, the company has now allocated $95 million for drilling and completion of wells in Eagle Ford shale.

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