Forest Oil Announces Completion of Acquisition in Greater Buffalo Wallow and East Texas Core Areas; Agreement to Sell Certain Assets in the Rockies; Third Quarter Net Sales Volumes Deferrals; and Updates 2008 Guidance

Business Wire, Sept 30, 2008

Total shut-in net sales volumes peaked at 108 MMcfe/d on September 14, 2008. Current shut-in net sales volumes are estimated to be 10 - 15 MMcfe/d, with a majority of the net sales volumes expected to be back online early in the fourth quarter of 2008. Forest incurred no major damage to its fields as a result of these storms.

UPDATED 2008 GUIDANCE

The guidance below represents Forest's updated net sales volumes guidance for the three months ending December 31, 2008 and capital expenditures for the twelve months ending December 31, 2008 giving effect to the activities associated with the Cordillera acquisition. Forest will reassess 2008 guidance upon the close of the planned assets sales in the Rockies and the Permian Basin. Except as indicated below, all other guidance detailed in Forest's press releases dated February 21, 2008, May 2, 2008 and August 5, 2008 has not changed.

The foregoing guidance is subject to all of the cautionary statements and limitations described in Forest's press release dated February 21, 2008 and below, under the headline "Forward-Looking Statements."

Oil and Gas Net Sales Volumes: As a result of the addition of 34 MMcfe/d of net sales volumes for the Cordillera acquisition discussed above, Forest expects total net sales volumes of 575 to 590 MMcfe/d in the fourth quarter of 2008.

Capital Expenditures: As a result of the additional drilling activity related to the Cordillera acquisition as well as additional drilling in East Texas, Forest estimates capital expenditures will increase $100 million to a range of $1.25 billion to $1.35 billion for the full year 2008.

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 and expenses and other forward-looking statements are subject to all of the risks and uncertainties normally incident to the exploration for and development and production and sale of oil and gas.

These risks include, but are not limited to, price volatility, inflation or 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, the uncertainty in executing our pending divestiture program and other risks as described in reports that Forest files with the Securities and Exchange Commission (SEC), including its 2007 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.