June 19, 2001 --- Vol. 7, No. 70June 2001

Redoubt reserves set at more than 50 million barrels

Forest Oil Corp. today announced the successful logging and testing of its second Cook Inlet Redoubt unit well and is estimating recoverable oil at more than 50 million barrels based on results of the first two wells.

The company said June 19 that the Redoubt Unit No. 2 well extends the field to a southern fault block separate from the Redoubt Unit No. 1 discovery well, drilled last year.

The No. 2 well was drilled to a total depth of 15,325 feet and logged approximately 452 feet of net pay. The well tested at a stabilized flow rate of 1,170 barrels of oil per day from two intervals in the Hemlock formation. Utilizing pressure data gathered during the flow test, the production rate for the well is estimated to be 3,000 barrels of oil per day using artificial lift.

With the results of the No. 2 well, Forest said it now estimates that recoverable oil in Redoubt Shoal will exceed 50 million barrels. The company said it plans to spud the No. 3 well within the next 30 days to test the down dip limits of the Hemlock formation in the southern fault block.

At Dec. 31, 2000, Forest had reported 9.8 million barrels of estimated proved reserves at Redoubt Shoal.

The company said it has begun full field development drilling and the facilities construction activities with facilities being designed to process 20,000 barrels of oil per day. The cost of field development drilling and facilities construction in 2001 and 2002 is currently estimated at $150 to $175 million. Forest said that of this amount, approximately $58 million is included in the company's previously announced planned capital expenditures for 2001. First production is presently planned for the end of 2002.

Forest Oil is engaged in the acquisition, exploration, development, production and marketing of natural gas and crude oil in North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in the Gulf of Mexico, Louisiana, Texas and Alaska, and in Canada in Alberta and the Northwest Territories. In Alaska, Forest operates the West McArthur River field on the west side of Cook Inlet.

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