Forest Oil Announces Sale of Texas Panhandle Area Assets for Proceeds of $1.0 Billion

  Forest Oil Announces Sale of Texas Panhandle Area Assets for Proceeds of
  $1.0 Billion

Business Wire

DENVER -- October 3, 2013

Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced that
it has entered into a definitive agreement to sell to Templar Energy LLC its
oil and gas assets located in the Texas Panhandle Area for $1.0 billion.
LeNorman Operating LLC, a wholly-owned subsidiary of Templar, will operate
the assets. The transaction is expected to close on or before November 25,
2013, with an effective date of October 1, 2013, and is subject to customary
purchase price adjustments and certain closing conditions. The divested
properties have produced approximately 100 MMcfe/d during 2013, generated
EBITDA of approximately $180 million for the most recent twelve month period
(including an allocation of Forest’s G&A expense), and had estimated proved
reserves of 517 Bcfe as of December 31, 2012. Forest does not expect to incur
any federal and state income taxes on the sale and intends to use the proceeds
primarily to reduce debt and enhance financial flexibility.

Patrick R. McDonald, President and CEO, stated, “We are pleased with the
outcome of our Texas Panhandle divestiture process. This transaction comprises
a major component of the strategic deleveraging program we instituted in
mid-2012 and will allow us to significantly reduce long-term debt and greatly
enhance our financial flexibility and liquidity. This divestiture sharpens our
operational focus and enables us to maintain development efforts in our core
Eagle Ford Shale asset, where oil production is projected to show notable
growth over the next several years. Looking ahead, we have initiated our 2014
capital budget process and will provide further details regarding our future
development plans later this year.”

J.P. Morgan Securities LLC advised Forest in connection with the Texas
Panhandle Area transaction.

                          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, 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
 
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