Forest Oil Announces Closing of Its South Texas Property Divestiture

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.