Forest Oil Announces Eagle Ford Shale Development Agreement

  Forest Oil Announces Eagle Ford Shale Development Agreement

Schlumberger to be Fully Aligned as a 50/50 Strategic Partner Providing
Technology, Integrated Services and Capital Resources to Enhance Value of
Eagle Ford Shale Asset

Business Wire

DENVER -- April 12, 2013

Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced the
signing of a definitive agreement with Schlumberger (NYSE:SLB), the world's
leading oilfield services company supplying technology, information solutions
and integrated project management to the oil and gas industry, for the future
development of Forest’s Eagle Ford Shale acreage in Gonzales County, Texas.

Patrick R. McDonald, Forest’s President and Chief Executive Officer, stated,
“We believe that our Eagle Ford position is a valuable oil asset and being
aligned and working together cooperatively with a strategic partner such as
Schlumberger will greatly enhance the value of this important asset.
Schlumberger Production Management (“Schlumberger”) will provide the
technology, integrated services, and capital resources necessary for us to
retain and develop a substantial portion of our acreage position. The
development agreement allows for accelerated production growth and enhancement
of our project economics as we integrate leading edge technologies across all
aspects of our Eagle Ford development program. Forest anticipates increasing
drilling activity to four rigs, from one to two rigs currently, by the end of
the third quarter of 2013. The capital carry amount combined with the
accelerated pace of development brings forward approximately $250 million in
PV10 economics to Forest. We are pleased that Schlumberger, after several
months of conducting their own technical due diligence, is partnering with us
so that we can achieve the best possible results for our company and our
shareholders.”

Carl Trowell, President, Schlumberger Production Management, commented, “We
are pleased to be part of this exciting opportunity, in which Forest and
Schlumberger are fully aligned and committed to the development of Forest’s
Eagle Ford unconventional resources. Our primary goal will be tosupport and
complementForest’scurrent team, and to develop and deploy industry-leading
technologies; develop the best unconventional resource workflows; and
implement new reservoir management techniques in order to maximize production
and reserves.”

Under the terms of the agreement, Schlumberger will pay a $90 million drilling
carry in the form of future drilling and completion services and related
development capital in order to earn a 50% working interest in Forest’s Eagle
Ford Shale acreage position. Upon completion of the phased contribution of the
drilling carry, Forest and Schlumberger will participate in future drilling on
a 50/50 basis. The agreement applies to wells spud on or subsequent to
November 28, 2012, none of which had been placed on production prior to April
1, 2013, and Forest will retain all of its interests in wells and production
that have been spud prior to November 28, 2012. Forest will be the operator of
the drilling program and currently expects that the drilling carry will be
fully realized by the end of 2014. As part of the agreement, Schlumberger will
provide assistance to Forest in the development and production enhancement of
its Eagle Ford acreage in the form of integrated service offerings and asset
management support; including but not limited to, drilling, completion and
lifting technologies; reservoir management technologies, and development of
unconventional resources workflows.

                          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, its ability to
replace production, its ability to compete with larger producers,
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.

Contact:

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