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Forest Oil Announces Closing of Its South Texas Property Divestiture

  Forest Oil Announces Closing of Its South Texas Property Divestiture

Business Wire

DENVER -- February 15, 2013

Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced that
it closed the previously announced sale of its properties in South Texas for
net cash proceeds of approximately $307 million, after customary adjustments
to reflect an effective date of January 1, 2013 and the hold-back of certain
properties, valued at approximately $14 million, for which required
consents-to-assign have not yet been obtained. A subsequent closing on these
hold-back properties is expected to occur within 90 days. The proceeds from
this sale will be used to redeem the remaining $300 million principal amount
outstanding of the Company’s 8.5% Senior Notes due 2014. In connection with
the closing of this transaction, the global borrowing base under Forest’s
credit facilities has been reduced to $900 million.

                          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 future natural
gas and liquids production, revenues, cash flows, liquidity, plans for future
operations, expenses, outlook for oil and natural gas prices, timing of
capital expenditures, and other forward-looking statements relating to Forest
are subject to all of the risks and uncertainties normally incident to their
exploration for and development and production and sale of liquids and natural
gas.

These risks relating to Forest include, but are not limited to, liquids and
natural gas price volatility, its level of indebtedness, access to cash flows
and other sources of liquidity, its ability to replace production or to renew
or maintain leases, its ability to compete with larger producers, the
uncertainty inherent in estimating oil and gas reserves, the impact of low oil
and gas prices, environmental risks, drilling and other operating risks,
regulatory changes, credit risk of financial counterparties, risks of using
third-party transportation and processing facilities and other risks as
described in reports that Forest files with the SEC, including its Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on
Form 8-K. 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 the United States
and selected international locations. Forest's estimated proved reserves and
producing properties are located in the United States in Arkansas, Louisiana,
Oklahoma, Texas, Utah, and Wyoming. 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.

February 15, 2013

Contact:

Forest Oil Corporation
Larry C. Busnardo, 303-812-1441
Director – Investor Relations