2008-10-21-2008-04-01-2008-05-02

Purchased 47,000 net acres in Ark-La-Tex region, gaining 110 Bcfe proved, 13 MMcfe/d.

Forest Oil Corp., Denver, (NYSE: FST) has closed its acquisition of producing properties in the company's core Ark-La-Tex area from a private seller for $281 million in cash. The assets include approximately 69,000 gross acres (47,000 net) with 110 billion cubic feet equivalent of proved reserves (45% proved developed). Production is approximately 13 million cubic feet equivalent per day. Primary fields include Jewett/McBee in Leon County, Texas; Woodardville Field in Red River Parish, Louisiana; and Overton Field in Smith County, Texas. Upside includes more than 500 additional vertical and horizontal drilling locations primarily in the Cotton Valley and Travis Peak intervals with Haynesville shale potential. Forest plans to increase the drilling program from three to five rigs by year end. Forest funded the acquisition with an existing credit facility and cash on hand. The effective date is March 1. Forest president and chief executive Craig Clark says, "This negotiated transaction adds significant acreage and drilling opportunities to our sizeable presence in the Ark-La-Tex area. Forest had little activity in this area two years ago, but it has been the fastest growing area within the company recently. We intend to apply our operational excellence to these assets, including the utilization of horizontal drilling, improved gas processing and transportation infrastructure, as we prudently invest our capital in 2008 and beyond." He says the deal nearly doubles the company's East Texas and North Louisiana leasehold to more than 140,000 gross acres. "Our near term work will focus on the Cotton Valley and Travis Peak intervals, both vertically and horizontally. Additionally, we may have opportunities in the Bossier/Haynesville shale and James lime."