Forest Oil Corporation Enters Into Agreement With Shell Canada Limited.

Business Editors

DENVER--(BUSINESS WIRE)--June 5, 2000

Forest Oil Corporation (NYSE:FST) announced today that it has entered into an agreement with Shell Canada Limited (Shell) to jointly explore and develop a 162-square mile area of the Southern Foothills located at Waterton, Alberta.

Forest will have a 40% working interest in this joint venture. Under the joint venture, Forest anticipates it may spend $10-15 million in 2000 and 2001. This prolific gas area operated by Shell has cumulative production to date in excess of 4 trillion cubic feet (TCF) from deep structural reservoirs and is anticipated to be a source of significant exploration opportunities into the future.

Work has commenced on a 100-square mile 3-D seismic program to refine several existing prospects and to allow mapping of additional exploration prospects. As part of a separate field development plan, Forest and Shell plan to drill a horizontal re-entry well at 7-3-6-3W5, and the first exploratory well is expected to be drilled after final interpretation of the 3-D seismic data in 2001. Both of the wells will be operated by Shell. The drilling schedule could begin as early as this fall, subject to a comprehensive public consultation process and a regulatory application.

Forest and Shell jointly acquired an additional 13 sections of land (over 8,300 gross acres) in the joint venture area at the May 31st land sale. These lands are covered by the Shell/Forest 3-D seismic survey.

Robert S. Boswell, Chairman and CEO stated, "We welcome the opportunity to be Shell's partner in this southern Foothills play. Shell has had great success in this area and we believe the joint venture program will prove very beneficial to both companies. Forest is pleased to add this highly prospective natural gas area to its already large portfolio of deep gas exploration prospects, which extend from the Canada/United States border north to the Mackenzie Delta in the Canadian Arctic."

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that expected results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in commodity prices for oil and gas, operating risks and other risk factors as described in the Company's 1999 Annual Report on Form 10-K as filed with the Securities and Exchange Commission.

Forest Oil Corporation is engaged in the acquisition, exploration, development, production and marketing of natural gas and crude oil in North America. Forest's principal reserves and producing properties are located in the United States in the Gulf of Mexico, Louisiana, Texas and in Canada in Alberta and the Northwest Territories. Forest's common stock trades on the New York Stock Exchange under the symbol FST.