Forest Oil to Begin Ibhubesi Exploration Program in Late 03

The national oil company of South Africa, PetroSA, signed a participation agreement with Forest Oil for a 24% working interest in the Ibhubesi Gas Project earlier this year. This agreement as recently been approved by the Minister of Minerals and Energy. A four to six well drilling program is anticipated to start by September 2003 depending on semisubmersible rig availability. Forest will have its interest carried in this $30 million gas drilling program. Forest Oil holds a 53% interest in Ibhubesi.