Forest Oil Corporation Announces Spin-off Of Lone Pine Resources Inc. And Special Stock Dividend To Shareholders

Forest Oil Corporation announced that its Board of Directors declared a special stock dividend to its shareholders of 70,000,000 shares of common stock of Lone Pine Resources Inc. (Lone Pine) owned by Forest, representing approximately 82% of the outstanding shares of Lone Pine common stock. The distribution by Forest of the special stock dividend will be made on September 30, 2011 (the Distribution Date) to all Forest shareholders of record on September 16, 2011 (the Record Date). The distribution will take place in the form of a pro rata common stock dividend to each Forest shareholder of record on the Record Date. As of August 31, 2011, Forest had 114,382,761 shares of common stock outstanding; accordingly, Forest shareholders will receive approximately 0.612 of a share of Lone Pine common stock for every share of Forest common stock held as of the Record Date.