DENVER--(BUSINESS WIRE)--Jul. 13, 2009-- Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced results from its second horizontal Haynesville Shale well in Red River Parish, Louisiana. The Driver 13-1H (100% WI) produced into the sales line at a rate of 20.3 MMcfe/d with 6500 psi flowing casing pressure in early July 2009. This prolific well was drilled and completed with a horizontal leg of 3,500 feet and a ten stage frac for a total well cost of approximately $9.0 million.

Forest holds approximately 11,050 net acres in Louisiana prospective for the Haynesville Shale and has identified 110 additional potential horizontal locations on this acreage. Forest intends to maintain a one-rig drilling program in Red River Parish for the remainder of 2009 and an additional rig in other prospective areas in the play.

H. Craig Clark, President and CEO, stated, “We are very pleased with the results from this Red River well. Our drilling and completion design delivered a well with results which are at the high end of the range for initial production per lateral length and number of frac stages for only $9 million. We intend to further improve costs and efficiencies as we expand upon our drilling effort in the play. Further, we intend to allocate a horizontal development rig to Red River Parish for the foreseeable future to exploit our acreage position. Our second rig will work both Texas and Louisiana properties in the future.

“Forest intends to continue its current horizontal drilling effort in the Haynesville Shale and the Texas Panhandle Granite Wash areas in order to refine its drilling and completion techniques. When costs and commodity prices improve to more attractive levels, Forest intends to deploy a rig count commensurate with its size and scale focused in these areas.”

Estimated Net Sales Volume for the Three Months Ended June 30, 2009

For the three months ended June 30, 2009, Forest’s average oil and gas net sales volume is estimated to be 520 MMcfe/d, representing a 3% increase compared to 505 MMcfe/d in the corresponding 2008 period and a 5% decrease compared to 550 MMcfe/d for the three months ended March 31, 2009. As forecasted, net sales volumes decreased from the three months ended March 31, 2009 due to a significantly reduced rig count. Forest operated only four rigs in the second quarter of 2009 and continues to defer significant investments until drilling and completion costs are reduced to acceptable levels to support a larger drilling program at current natural gas prices.

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 its 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 are subject to all of the risks and uncertainties normally incident to Forest’s exploration for and development and production and sale of oil and gas.

These risks include, but are not limited to, oil and natural gas price volatility, Forest’s access to cash flows and other sources of liquidity to fund its capital expenditures, its level of indebtedness, its ability to replace production, the impact of the current financial crisis on Forest’s business and financial condition, a lack of availability of goods and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, economic conditions and other risks as described in reports that Forest files with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Also, the financial results of Forest's foreign operations are subject to currency exchange rate risks. 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 North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in Arkansas, Louisiana, New Mexico, Oklahoma, Texas, Utah, and Wyoming, and in Canada. 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.

Source: Forest Oil Corporation

Forest Oil Corporation
Patrick J. Redmond, 303-812-1441
Director - Investor Relations