Forest Oil Announces Significant Gas Discovery in Utica Shale and Acquires Ark-La-Tex...

Forest Oil Announces Significant Gas Discovery in Utica Shale and Acquires Ark-La-Tex Properties for $285 Million

DENVER--(Business Wire)--
Forest Oil Corporation (NYSE:FST) (Forest or the Company)
announced today a new natural gas discovery in the Utica Shale located
in Quebec, Canada. In addition, the Company announced that is has
agreed to purchase properties located in its Ark-La-Tex core areas for
$285 million.

Utica Shale

Over the last two years, Forest has accumulated approximately
269,000 net acres, under lease or farmout, in the St. Lawrence
Lowlands in Quebec, Canada. Two vertical pilot wells were drilled in
2007, testing the Utica Shale, to a total depth of approximately 4,800
feet. Production rates tested up to 1 MMcfe/d. Although the play is
still in the early stages, Forest believes the initial results are
encouraging due to the following factors:

-- Shallow depth of the shale

-- Rock properties are comparable to other more established shale
plays

-- High-quality natural gas with minimal impurities

-- Infrastructure in place with nearby access to major pipelines

-- Premium natural gas pricing to NYMEX makes the economics
compelling

Forest plans to drill three horizontal wells in 2008 to refine its
drilling and completion techniques. Based on technical data and the
vertical pilot well program, the preliminary net resource potential on
Forest's acreage is estimated to be approximately 4 Tcfe. First
production is expected in 2009 with the potential for a full scale
drilling program in 2010 and beyond.

Ark-La-Tex Acquisition

Forest has entered into a definitive agreement with a private
entity to acquire producing assets including approximately 69,000
gross acres (47,000 net acres) primarily in its core Ark-La-Tex area.
Forest attributes estimated proved reserves of 110 Bcfe (45% proved
developed) to the properties which produced an average of
approximately 13 MMcfe/d in 2007. Forest has identified more than 500
additional vertical and horizontal drilling locations on the
properties included in the acquisition primarily in the Cotton Valley
and Travis Peak intervals. Forest will pay approximately $285 million
cash for the assets, subject to customary adjustments tied to an
economic effective date of March 1, 2008, and intends to fund the
acquisition using its credit facility and cash on hand.

Craig Clark, Forest's President and Chief Executive Officer,
stated, "This negotiated transaction adds significant acreage and
drilling opportunities to our sizeable presence in the Ark-La-Tex
area. Forest had little activity in this area two years ago, but it
has been the fastest growing area within the Company recently. The
acquisition nearly doubles our East Texas / North Louisiana leasehold
to over 140,000 gross acres. Our near term work will focus on the
Cotton Valley and Travis Peak intervals, both vertically and
horizontally. Additionally, we may have opportunities in the Bossier /
Haynesville Shale and James Lime. This is an excellent bolt on
acquisition for our Eastern Business Unit."

Forest intends to update 2008 guidance when the acquisition is
closed. The acquisition is scheduled to close in the second quarter of
2008 and is subject to customary closing conditions and adjustments.

Analyst Conference

Forest will discuss these items and other corporate matters today
at its 2008 Analyst Conference in New York. To access the live
webcast, visit Forest's website at www.forestoil.com today at 1:00 PM
ET. The slides that accompany the conference presentation will be
posted to Forest's website today by 11:00 AM ET. The webcast will
include presentations from Forest's senior management and will last
approximately three hours. If you are unable to listen to the live
webcast, a replay will be available through Friday, April 18, 2008 and
can be accessed from www.forestoil.com.

Reserve Information

The Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. The description
regarding the Utica Shale project above includes a reference to
reserve potential. Forest uses the terms "probable" and "possible"
reserves, resource "potential" or "upside" or other descriptions of
volumes of reserves potentially recoverable through additional
drilling or recovery techniques that the SEC's guidelines strictly
prohibit Forest from including in filings with the SEC. These
estimates are by their nature more speculative than estimates of
proved reserves and accordingly are subject to substantially greater
risk of being actually realized by Forest. Investors are urged to
consider closely the disclosure in Forest's Annual Report on Form 10-K
for fiscal year ended December 31, 2007, copies of which are available
for free from Forest by writing Forest at 707 17th Street, Suite 3600,
Denver, CO 80202, Attention: Investor Relations, or by calling
Investor Relations at 303-812-1400, or visiting Forest's website at
www.forestoil.com.

Forward-Looking Statements

This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, that address activities that Forest
assumes, plans, expects, believes, projects, estimates or anticipates
(and other similar expressions) will, should or may occur in the
future are forward-looking statements. The forward-looking statements
provided in this press release are based on management's current
belief, based on currently available information, as to the outcome
and timing of future events. Forest cautions that its future natural
gas and liquids production, revenues and expenses and other
forward-looking statements are subject to all of the risks and
uncertainties normally incident to the exploration for and development
and production and sale of oil and gas.

These risks include, but are not limited to, price volatility,
inflation or lack of availability of goods and services, environmental
risks, drilling and other operating risks, regulatory changes, the
uncertainty inherent in estimating future oil and gas production or
reserves, and other risks as described in reports that Forest files
with the Securities and Exchange Commission (SEC), including its 2007
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K. Also, the financial results of Forest's
foreign operations are subject to currency exchange rate risks. Any of
these factors could cause Forest's actual results and plans to differ
materially from those in the forward-looking statements.

Forest Oil Corporation is engaged in the acquisition, exploration,
development, and production of natural gas and liquids in North
America and selected international locations. Forest's principal
reserves and producing properties are located in the United States in
Arkansas, Colorado, Louisiana, New Mexico, Oklahoma, Texas, Utah, and
Wyoming, and in Canada. Forest's common stock trades on the New York
Stock Exchange under the symbol FST. For more information about
Forest, please visit its website at www.forestoil.com.

Forest Oil Corporation
Patrick J. Redmond, 303-812-1441
Director - Investor Relations

Copyright Business Wire 2008