Forest Oil Restores Small Portion of Gulf of Mexico Production

Forest Oil says that it had approximately 150 MMcfe/d of production shut-in in the Gulf of Mexico on August 28, 2005 in preparation for Hurricane Katrina. All personnel were safely evacuated and activity was suspended prior to the hurricane. Since that time, estimated production of 55 MMcfe/d has been restored with a further 20 MMcfe/d scheduled to be restored on August 31, 2005. The majority of the production that remains shut-in is due to damage to third-party pipeline and gas processing plants in Southeast Louisiana. The timetable for restoring full production is uncertain as it is dependent on repairs to transportation and processing facilities which are owned by others.

There were no drilling rigs on properties in which Forest owns an interest that were damaged by the storm. Operations have resumed on these rigs. Preliminary aerial assessments have indicated damage to production facilities at South Pass 24 which was producing 7 MMcfe/d prior to Hurricane Katrina. No other significant damage has been observed at this time. Depending on conditions and transportation availability, it is anticipated that personnel will begin returning this week to offshore platforms to more fully assess damage to the operated structures.