Forest Oil Announces Fourth Quarter And Year-End 2011 Results

Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced financial and operational results for the fourth quarter and full-year 2011 and provided year-end estimated proved reserves. The financial results of Forest's former Canadian subsidiary, Lone Pine Resources Inc. (Lone Pine) (NYSE: LPR) (TSX: LPR), are treated as discontinued operations in the accompanying full-year consolidated financial statements.

The information contained throughout the remainder of this press release, unless otherwise indicated, relates only to the retained operations of Forest and excludes the operations of Lone Pine from the current and historic periods.

Forest reported the following highlights for the three months ended December 31, 2011:

• Net sales volumes of 342 MMcfe/d organically increased 6% from the third quarter of 2011
• Liquids net sales volumes of 17.3 MBbls/d organically increased 20% from the third quarter of 2011
• Adjusted net earnings of $20 million decreased 57% from the corresponding 2010 period
• Adjusted EBITDA of $139 million decreased 18% from the corresponding 2010 period
• Adjusted discretionary cash flow of $104 million decreased 23% from the corresponding 2010 period

H. Craig Clark, President and CEO, stated, "2011 was a transitional year for Forest through the advancement of numerous oil drilling opportunities in our U.S. asset portfolio following the Lone Pine transaction. We tested new shallow oil zones in the Texas Panhandle during 2011, including the Missourian Wash and the Cleveland formations which have attractive economics. Additionally, we are currently testing two other oil zones in the Panhandle area that, given early results and offset activity, show promise. Our advancement of oil development in the Texas Panhandle is complementary to our legacy horizontal drilling results in the Granite Wash where we have expanded the liquids-rich productive intervals to include the Granite Wash "A" and "C", and have now tested 11 intervals in the Texas Panhandle. While we have always recognized the enormous potential associated with the multitude of pay zones in the Texas Panhandle, the number of zones added during the year, and the quality of those zones, exceeded our initial expectations.

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