Forest Oil ( FST) raised its estimates for average daily oil and gas production and increased its production costs estimates.

The company expects its daily production to be in the range of 300 million to 320 million cubic feet of equivalent, up from the previous estimate of 290 million to 310 million cubic feet of equivalent for 2006.

Forest maintained its forecast for oil and natural gas liquids production of 19,000 and 21,000 barrels per day, but now sees natural gas production of 185 million and 195 million cubic feet of equivalent per day for 2006, up from 175 and 185 million.

Forest expects its 2006 production expenses to be $195 million and $215 million, up from the previous estimate of $190 million to $210 million.

The company increased its estimated expenditures for exploration and development to $450 million and $500 million in 2006 from $425 million and $475 million.

The company's shares are trading at $34.96, up 36 cents, or 1%.
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