Forest Oil to receive $6.8 million from Columbia bankruptcy settlement.

DENVER--(BUSINESS WIRE)--Nov. 16, 1995--Forest Oil Corporation reported today that it will receive $6,840,000 resulting from yesterday's ruling by U.S. Bankruptcy Court Judge Helen Balik confirming Columbia Gas System, Inc.'s Chapter 11 reorganization plans.

Forest expects to receive its cash distribution in December 1995 or January 1996. Forest may receive up to an additional $360,000 which represents a holdback amount attributable to the company's allowed claim. As a result of this ruling, Forest expects to record income of approximately $4,000,000.

After payments to third parties, including the repayment of a participation interest in the Columbia claim, Forest expects to realize net cash proceeds of at least $1.1 million.

Forest Oil Corporation is engaged in the exploitation and acquisition of, exploration for and development and production of natural gas and crude oil. The company's principal reserves and producing properties are located in the Gulf of Mexico and Texas, Oklahoma and Wyoming. The company's common and preferred stocks are traded on the Nasdaq National Market System under the FOIL and FOILO symbols, respectively.

CONTACT: Forest Oil Corp., Denver

Zack Hager, 303/812-1610