Forest Oil Announces Intent to Sell Texas Panhandle Assets

  Forest Oil Announces Intent to Sell Texas Panhandle Assets

Business Wire

DENVER -- July 15, 2013

Forest Oil Corporation (NYSE:FST) (Forest or the Company) announced today
that, after receiving unsolicited proposals from third parties interested in
acquiring Forest’s oil and gas assets located in the Texas Panhandle, Forest’s
Board of Directors has determined that the Company will initiate a marketed
process to pursue the sale of such assets. Forest has retained J.P. Morgan
Securities LLC to assist in the marketing efforts. Forest intends to use any
proceeds from a potential sale to reduce debt and enhance financial
flexibility.

Patrick R. McDonald, President and CEO commented, “Over the last several
years, drilling and completion efforts by Forest and other companies have
delineated substantial oil, natural gas and natural gas liquids resources in
the Texas Panhandle. Our significant acreage position, which is largely
operated by Forest and held by production, presents a large-scale, low-risk
development opportunity. If completed, the sale of the Texas Panhandle assets
should allow us to reduce meaningfully our indebtedness and enhance our
financial flexibility and ability to accelerate development of our assets.
Upon successful completion of a transaction, Forest’s remaining asset
portfolio will be anchored by its ongoing oil development opportunity in the
Eagle Ford Shale, where oil production is projected to more than double during
2014. In addition, the Company has a position of 111,000 net acres in East
Texas which is largely held by production and upon which the Company plans to
continue the development of its oil and natural gas liquids properties. The
Company also intends to maintain its exposure to potential natural gas
development through its low-decline natural gas properties in the Ark-La-Tex
region.”

                          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, intends, 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, timing and terms of any divestitures, and other
forward-looking statements relating to Forest are subject to all of the risks
and uncertainties normally incident to the exploration for and development and
production and sale of liquids and natural gas.

These risks relating to Forest include, but are not limited to, oil 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, the decision to sell or offer for
sale, or to determine not to sell any portion of its assets, the ability to
enter into agreements relating to such sales on desirable terms or at all, the
timing of any such agreements, the ability to consummate any such sales, the
ability to realize the anticipated benefits of any such sales, the ability to
determine the use of proceeds from any such sales, the ability to determine
whether to reduce outstanding indebtedness and the amount and timing of any
such reductions, 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 principal reserves and
producing properties are located in the United States in Arkansas, Louisiana,
Oklahoma, Texas, 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, 303-812-1441
Director, Investor Relations