Forest Oil announces increased Gulf production.

DENVER--(BUSINESS WIRE)--July 10, 1997--

Eugene Island 53

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Forest Oil Corp. (NASDAQ:FOIL) announced today initial production results rom its Eugene Island Block 53 #10 exploratory well located in federal waters offshore Louisiana.

The well is flowing approximately 25.0 million cubic feet (mmcf) of natural gas and 979 barrels of condensate, or 30.9 mmcf equivalent (mmcfe), per day at 3,390 pounds per square inch (psi) flowing tubing pressure through a 35/64 inch choke from a perforated interval between 13,087 feet and 13,282 feet true vertical depth (tvd).

Forest owns a 100% working interest (wi) in the well which was discovered in the first quarter of 1997. The company believes the #10 well is capable of producing at a higher rate, but production is limited by the volume of liquids the production facilities are capable of handling. Forest is currently drilling an offset well (100% wi) to test similar structures in different fault blocks on Eugene Island Block 53.

High Island 116

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Forest also announced the results of a successful acid treatment to remove scale build-up on its High Island Block 116 B-1 well. Prior to the acid treatment, the well had been producing approximately 31.0 mmcf of natural gas and 600 barrels of condensate, or 34.6 mmcfe, per day through a 64/64" choke at 2,575 psi from a perforated interval between 10,126 feet and 10,586 feet tvd. The success of the workover procedure will allow the well to be produced at substantially higher rates.

Immediately following the acid treatment, the well produced 57.4 mmcf of gas and 1,011 barrels of condensate, or 63.5 mmcfe, per day through a 60/64" choke at 4,900 psi from the same interval. The B-1 well is currently producing 48.0 mmcf of gas and 915 barrels of condensate, or 53.5 mmcfe, per day through a 64/64" choke at 3,800 psi. Subsequent acid treatments or other remedial procedures will be applied when necessary to maximize flow rates.

Forest (55% wi) is the operator of the B-1 well and American Exploration Company (ASE:AX) owns the remaining 45% wi.

Bob Boswell, president and chief executive officer stated, "This additional production, while four to six weeks later than planned, increases our net Gulf production to approximately 100 mmcfe per day and company-wide production to approximately 195 mmcfe per day. We believe drilling opportunities in our Eugene Island 43/53/64/65 core area will expand as we further develop our understanding of the deeper horizons in this area.

"In addition to activity at Eugene Island 53, we intend to drill initial prospects at our 100%-owned Eugene Island Block 43 late this year, and anticipate announcing initial production in the third quarter from Eugene Island 64/65."

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 its goals 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, environmental risks, operating risks, risks related to development, the ability of the company to meet its stated business goals and other risk factors as described in the company's 1996 Annual Report and Form 10-K as filed with the Securities and Exchange Commission.

Forest Oil Corp. 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 Gulf of Mexico, Texas, Oklahoma and Canada. Forest's common stock trades on the Nasdaq National Market tier of The Nasdaq Stock Market under the symbol FOIL.

CONTACT: Forest Oil Corp., Denver

Zack Hager Jr., 303/812-1610