Forest Oil Corp., Denver, (NYSE: FST) reports results from its third and fourth operated horizontal Texas Panhandle Granite Wash wells.

In December, the third operated horizontal well (56.2% working interest) produced at a 24-hour production rate of 15.1 million cubic feet of gas, 1,200 barrels of oil and condensate and 2,400 barrels of gas liquids per day for a total rate of 37 million cubic feet of gas equivalent per day.

In January, the fourth operated horizontal well (71.9% working interest) produced at a 24-hour production rate of 16 million cubic feet of gas, 1,300 barrels of oil and condensate and 2,200 barrels of gas liquids per day for a total rate of 37 million cubic feet equivalent per day.

These wells were drilled and completed with horizontal legs of approximately 4,200 feet and nine to ten stages of fracture stimulation for an average total well cost of approximately $6.8 million.

Forest president and chief executive H. Craig Clark says, “Our Texas Panhandle Granite Wash program continues to exceed our expectations, not only from the extremely high gas rates, but also the strong liquid components associated with these wells. Our most recent wells had total liquids of approximately 58% of the total equivalent production rate, which contained an average of 1,250 barrels per day of oil and condensate. Based on the oil component from our three most recent wells, Forest’s recently divested Permian Basin oil production may be replaced by this area.”

Forest has reduced the well costs in this area and expects to run four rigs in the Texas Panhandle in 2010.

Forest has oil and gas operations primarily in Arkansas, Louisiana, New Mexico, Oklahoma, Texas, Utah, Wyoming and in Canada.