Forest Oil Updates Progress on Agreement to Sell South Louisiana Properties

Forest Oil Corporation

today announced that it has entered into a definitive agreement to sell all of its properties located in South Louisiana for approximately $220 million. The transaction is expected to close on November 16, 2012, with an effective date of August 1, 2012, and is subject to customary closing conditions and post-closing purchase price adjustments. The properties produced 20 MMcfe/d (65% liquids) during the third quarter of 2012 and had estimated proved reserves of 45 Bcfe (62% liquids) as of December 31, 2011. Forest intends to use the proceeds from this divestiture to repay outstanding borrowings under its bank credit facility. Since embarking on its deleveraging plan in early July, Forest has