Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced that it closed the previously announced sale of its properties in the Texas Panhandle Area for net cash proceeds of approximately $944 million, after customary adjustments to reflect an effective date of October 1, 2013. In addition, the net proceeds do not include approximately $44 million that were closed into escrow, which the Company may receive as consents-to-assign are received and post-closing title curative work is completed. The net proceeds also do not include $10 million, which will remain in escrow for twelve months following the closing, to support Forest’s indemnity obligations under the purchase and sale agreement, with the remainder to be disbursed to Forest at the end of that period.

The proceeds from this sale will be used to fund the previously announced cash tender offer of Forest’s 7.5% Senior Notes due 2020 and its 7.25% Senior Notes due 2019, to reduce outstanding borrowings under its credit facility and for other general corporate purposes. In connection with the closing of this transaction, the borrowing base under Forest’s credit facilities has been reduced to $400 million.

FORWARD-LOOKING STATEMENTS

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. All statements, other than statements of historical facts, that address activities that Forest assumes, plans, expects, believes, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements provided in this press release are based on management's current belief, based on currently available information, as to the outcome and timing of future events. Forest cautions that future natural gas and liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing of capital expenditures, and other forward-looking statements relating to Forest are subject to all of the risks and uncertainties normally incident to their exploration for and development and production and sale of liquids and natural gas.

These risks relating to Forest include, but are not limited to, liquids and natural gas price volatility, its level of indebtedness, access to cash flows and other sources of liquidity, its ability to replace production or to renew or maintain leases, its ability to compete with larger producers, the uncertainty inherent in estimating oil and gas reserves, the impact of low oil and gas prices, environmental risks, drilling and other operating risks, regulatory changes, credit risk of financial counterparties, risks of using third-party transportation and processing facilities and other risks as described in reports that Forest files with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Any of these factors could cause Forest's actual results and plans to differ materially from those in the forward-looking statements.

Forest Oil Corporation is engaged in the acquisition, exploration, development, and production of natural gas and liquids in the United States and selected international locations. Forest's estimated proved reserves and producing properties are located in the United States in Arkansas, Louisiana, Oklahoma, Texas, Utah, and Wyoming. Forest's common stock trades on the New York Stock Exchange under the symbol FST. For more information about Forest, please visit its website at www.forestoil.com.

November 25, 2013

Large portfolios of non-agency RMBS mortgage servicing rights (MSRs) continued to move from banks to nonbank servicers in the third quarter of 2013, according to a new report from Fitch Ratings. Additional large MSR transfers are expected to occur by the end of 2013 as the banks continue to offload defaulted/high-risk loans. These transfers have contributed to many changes in the servicing landscape as nonbank servicers now have higher subprime delinquency rates and use principal forgiveness modifications as a higher percentage of loan modifications than bank servicers.

Residential mortgage servicers continue to be faced with issues regarding the management of delinquency and foreclosure timelines. There continues to be a marked difference between bank and nonbank servicers in the time to resolve delinquent loans, with nonbank servicers showing better performance. However, despite nonbank servicers' better performance in working loans through delinquency, once in foreclosure, there is little difference between the servicer types in time spent in foreclosure for both judicial and nonjudicial states. In both cases, timelines continue to increase due to stricter guidelines and court delays. However, real estate owned (REO) inventories continue to decrease as real estate market conditions improve, enabling servicers to sell REO properties faster.

Starting in January 2014, all servicers will become subject to the servicing guidelines of the Consumer Financial Protection Bureau (CFPB). Fitch believes the servicing standards set by these guidelines will help to define industry best practices. However, servicers may be faced with increased costs as the necessary technology and process enhancements are made to ensure compliance with the guidelines. Furthermore, additional requirements regarding loss mitigation efforts may cause further delays in working loans through delinquency and foreclosure.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: RMBS Servicing Index -- U.S.A. (3Q13)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723469

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