Forest Oil Details Accelerated Eagle Ford Shale Drilling Program

  Forest Oil Details Accelerated Eagle Ford Shale Drilling Program

 Accelerated Development Program to Hold an Aggregate of 55,000 Gross (27,500
                                  Net) Acres

Incorporate Four Drilling Rigs by the Third Quarter of 2013 and Drill 60 Gross
          (30 Net) Wells in 2013 and 80 Gross (40 Net) Wells in 2014

 Eagle Ford Shale Average Net Sales Volumes Expected to Reach 6,500 Boe/d in
                        2014 from 1,600 Boe/d in 2012

Business Wire

DENVER -- April 12, 2013

Forest Oil Corporation (NYSE: FST) (Forest or the Company) today provided an
update on its Eagle Ford Shale drilling program for 2013 and 2014 and
announced a teleconference call scheduled for April 12, 2013 at 7:00 AM
Mountain Time to discuss the release.

Forest recently announced the signing of a definitive agreement with an
industry partner for the future development of the Company’s Eagle Ford Shale
acreage position. Under the terms of the agreement, the industry partner 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. In conjunction with
the agreement, Forest plans to accelerate development by increasing drilling
activity to four rigs, from one to two rigs currently, by the end of the third
quarter of 2013. Forest projects that the capital carry amount combined with
the accelerated pace of development will bring forward approximately $250
million in PV10 economics.

Forest anticipates that the accelerated development program will hold an
aggregate of 55,000 gross (27,500 net) acres in Gonzales County, compared to
40,000 gross (40,000 net) acres based on the current development program. The
increased acreage position has 688 gross (344 net) locations identified based
on 80-acre spacing, and Forest anticipates being able to drill 80 gross (40
net) wells per year beginning in 2014. Based on Forest’s current estimated
ultimate recovery of 300 Mboe per location, the Eagle Ford acreage contains a
potential gross unrisked resource of over 200 MMboe (100 MMboe net).

Forest estimates that its share of capital expenditures in the accelerated
development plan for 2013 and 2014 will total approximately $125 million and
$220 million, respectively. The accelerated development plan will result in
ten and twenty additional net wells being drilled in 2013 and 2014,
respectively. The 2013 additional net wells are primarily scheduled to be
on-line later in the year and thus will not materially change Forest’s average
net sales volumes for 2013. However, average net sales volumes from the Eagle
Ford are expected to more than double from an average of 2,800 boe/d in 2013
to 6,500 boe/d during 2014 as the benefits from a full year of the accelerated
development program are realized. Importantly, the Eagle Ford program is
anticipated to generate lease level income of approximately 68% and 80% of the
total net capital expenditures for 2013 and 2014.

The table below summarizes and highlights the primary benefits of the
accelerated development plan as compared to Forest’s current development plan.

                                              
                  2013                             2014
                  Current       Accelerated      Current       Accelerated
                  Development     Development     Development     Development
                  Plan            Plan             Plan            Plan
                                                                   
Acreage Held      40,000          55,000           40,000          55,000
(Gross)
Acreage Held      40,000          27,500           40,000          27,500
(Net)
Drilling Rigs     1               3                1               4
(Average)
Wells (Gross)     20              60               20              80
Wells (Net)       20              30               20              40
Net
Production        ~2,800          ~2,800           ~3,700          ~6,500
(Boe/d)
Net
Capital^(1)       $125            $125             $125            $220
($MM)
Lease Level
Income^(2)        $85             $85              $100            $175
($MM)
Lease Level
Income as a                       68%                              80%
Percentage of
Capital
                                                                   

(1) Net of $90 million drilling carry in the accelerated development plan
(2) Lease level income based on NYMEX strip prices as of March 31, 2013

                             TELECONFERENCE CALL

A conference call is scheduled for today, April 12, 2013 at 7:00 AM Mountain
Time to discuss the release in more detail. You may access the call by dialing
toll free 866.318.8617 (for U.S./Canada) and 617.399.5136 (for International)
and request the Forest Oil teleconference (ID #44814110). The conference call
will also be webcast live on the Internet and can be accessed by going to the
Forest Oil website at www.forestoil.com in the “Investor Relations” section of
the website. A slide summary will be made available in the “Investor
Relations” section of the website under “Recent Presentations”. A Q&A period
will follow.

A replay of the conference call will be available through April 19, 2013. You
may access the replay by dialing toll free 888.286.8010 (for U.S./Canada) and
617.801.6888 (for International), conference ID #96849878. An archive of the
conference call webcast will also be available at www.forestoil.com in the
“Investor Relations” section of the website.

                          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