Forest Oil Closes Its Previously Announced Sale of Alaska Assets

Under the terms of the agreement, Forest received the followingconsideration:Cash of $268 million that repaid the full balance of the FAO term loansCash of $132 million paid to Forest10 million shares of Pacific common stock, andA $60.75 million zero coupon Senior Subordinated Note from Pacific due 2014

H. Craig Clark, President and CEO, stated, "The close of thistransaction marks a key strategic event for Forest. The producingassets of the company are now entirely onshore North America andfocused primarily on repeatable plays in tight-gas sands andlong-lived oil. Additionally, with the sale of these assets, Foresthas reduced the leverage on its balance sheet, having pro forma netdebt of approximately $1.7 billion and pro forma liquidity, with itscurrent borrowing base, of $1.1 billion at June 30, 2007. Forest iswell on its way to achieving its stated target of $500 to $600 millionof divestitures by the end of 2007. Given the state of affairs in thecredit markets, we believe our financial flexibility favorablypositions us in the marketplace.

"We want to thank our Alaska employees for their efforts and theircontributions to the sale process. We also want to thank Pacific foreffectively working with us on the transaction."

NON-GAAP FINANCIAL MEASURES

Forest presents pro forma net debt as of June 30, 2007, whichconsists of principal amount of debt less cash and cash equivalents onhand at the end of the period less cash proceeds received from thesale of its Alaska assets. Management uses this measure to assessForest's indebtedness, based on actual principal amounts owed and cashon hand. Forest's pro forma liquidity as of June 30, 2007 of $1.1billion is calculated using Forest's current borrowing base of $1.4billion less amounts outstanding under its credit facilities, afterdeducting the proceeds from the sale of its Alaska assets, of $.3billion. The following table sets forth the components of pro formanet debt as of June 30, 2007 (in millions):

                                      Cash Proceeds from   Pro Forma                        June 30, 2007  Alaska Sale (1)   June 30, 2007                        ------------- ------------------ -------------Credit facilities       $         432              (127)           305Term loan facilities              264              (264)             -8% Senior notes due 2008                             265                 -            2658% Senior notes due 2011                             285                 -            2857% Senior subordinated notes due 2013                     6                 -              67 3/4% Senior notes due 2014                             150                 -            1507 1/4% Senior notes due 2019                             750                 -            750                        ------------- ------------------ -------------    Total debt                  2,152              (391)         1,761Cash and cash equivalents                       16                 -             16                        ------------- ------------------ -------------    Net debt            $       2,136              (391)         1,745                        ============= ================== =============(1) Total cash proceeds of $400 million were realized in the transaction; however, $5 million was already on deposit with Forest as of June 30, 2007 and $4 million was used to pay the put premium associated with the term loan facilities.

FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements within themeaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934. All statements, other thanstatements of historical facts, that address activities that Forestassumes, plans, expects, believes, projects, estimates or anticipates(and other similar expressions) will, should or may occur in thefuture are forward-looking statements. The forward-looking statementsprovided in this press release are based on management's currentbelief, based on currently available information, as to the outcomeand timing of future events. Forest cautions that its future naturalgas and liquids production, revenues and expenses and otherforward-looking statements are subject to all of the risks anduncertainties normally incident to the exploration for and developmentand 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, environmentalrisks, drilling and other operating risks, regulatory changes, theuncertainty inherent in estimating future oil and gas production orreserves, and other risks as described in reports that Forest fileswith the Securities and Exchange Commission (SEC), including its 2006Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, andCurrent Reports on Form 8-K. Also, the financial results of Forest'sforeign operations are subject to currency exchange rate risks. Any ofthese factors could cause Forest's actual results and plans to differmaterially from those in the forward-looking statements.

Forest Oil Corporation is engaged in the acquisition, exploration,development, and production of natural gas and liquids in NorthAmerica and selected international locations. Forest's principalreserves and producing properties are located in the United States inArkansas, Colorado, Louisiana, New Mexico, Oklahoma, Texas, Utah, andWyoming, and in Canada. Forest's common stock trades on the New YorkStock Exchange under the symbol FST. For more information aboutForest, please visit its website at .