IPAA 2004 Oil & Gas Investment Symposium April 21, 2004 Forest Oil Corporation

FOREST OIL PROFILE Market Capitalization (as of 4/16/04) $1.4 Billion Enterprise Value $2.3 Billion Headquartered Denver, Colorado Business UnitsGulf Coast, Western U.S., Alaska, Canada and International

NORTH AMERICAN OPERATIONAL PROFILE Significant Position Gulf Coast Significant Position Gulf Coast Exploration Steady Production 12/31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) Alaska Canada /31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) Western /31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) Gulf Coast /31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) Consolidated 1, /31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) 2004 Exploitation 2003 Acquisitions 2004 Exploration

THE “4-POINT” GAME PLAN 1.Continued reduction in costs –Achieving higher margins is equivalent to drilling “no cost” wells 2.Acquisitions will be an integral part of our investment program –Acquisitions will compete for capital with drilling 3.Lower exposure to frontier exploration –Shift investment emphasis toward low-risk exploitation and development 4.Maintain strong balance sheet –Prudent capital structure and financial flexibility are critical to act quickly and optimize investment returns

1. CONTINUED REDUCTION IN COSTS  Maintain savings in lease operating expenses achieved in 2003  Reduce general and administrative expenses by greater than 5%  Reduce interest expense through fixed/floating % and debt reduction  Capex budget adherence with improved drilling efficiencies Create a Culture of Cost Discipline

PerPer 2002Unit2003Unit Direct / Workover Severance / Ad Valorem Transportation Total  Aggressive cost reduction on acquired fields – Oxy-Permian monthly LOE reduced by over 40%  Concentrated effort on high-cost non-operated fields 1. CONTINUED REDUCTION IN COSTS - LOE $ millions

1. CONTINUED REDUCTION IN COSTS – G&A  Reduce general and administrative expenses by a minimum of 5%  Costs have steadily decreased since August 2003  Employee costs have increased 10% due to significant acquisitions and reduction of contractors  Target legal, insurance and occupancy costs

Lease Operating ExpenseGeneral and Administrative Expense Interest/Current Tax Expense Total Cash Costs $1.03 / Mcfe $0.21 / Mcfe $0.29 / Mcfe $0.35 / Mcfe $1.14 / Mcfe $0.24 / Mcfe $1.60 / Mcfe $1.64 / Mcfe $1.10 / Mcfe $0.27 / Mcfe $0.33 / Mcfe $1.72 / Mcfe 1. CONTINUED REDUCTION IN COSTS – Total Cash Costs 2% Annual Reduction

2003 Program2000 – 2001 Program (Gross $MM) Offshore South Africa 2003 Program2000 – 2001 Program South Timbalier Alberta Foothills 1. CONTINUED REDUCTION IN COSTS – Drilling 2000 – 2002 Program 2003 – 2004 Program

2. ACQUISITION PROGRAM  Very active last 6 months of 2003 –216% annual reserve replacement at $1.22 per Mcfe  Acquisition opportunities to compete for capital with drilling activities –Employ 2004 free cash flow –Capital markets will be accessed to fund large acquisitions  Continued disposition of non-strategic assets –High cost properties –Non-performing assets, plants, and pipeline

2. ACQUISITION PROGRAM – 2003 Activity South Bonus$ 5.825$1.0750,00032,0006.4n/a McAllen ,00013,0002.6$.81 Oxy-Permian , Unocal ,00093, New Permian ,0005, Others Total$ $ ,000143, $1.14  Total F&D cost of $1.22 on 322 Bcfe of reserves w/o allocation, $1.14 w/ allocation  Production per Mcfe/d acquired at $3,558 with R/P of 8 years  Plants, pipelines and other assets included PurchaseTrans.Reserve PriceProductionReservesAmount Per Net Undevel. OtherAmount (mm)(MMcfe/d)(Bcfe)Mcfe/Res.AcreageAcreageAssetsPer Mcfe

2. ACQUISITION PROGRAM - Oxy-Permian InvestmentPV 10 Reserves ($MM)($MM)(Bcfe)$/McfeROCE % Original Acquisition Production/cash flow(5.2)(5.2)(1.4)3.72 Pump Out Sub-Total Reserve adds/Revisions Remaining Investment  PV increase due to increased production and decreased LOE  Potential offset drilling at Sand Dunes field  16% of original investment paid out with 97% of reserves remaining  PV 10 on same price deck is now 113% of original purchase price

2. ACQUISITION PROGRAM – Unocal  Terminated operating contracts in December 2003  Current net production ahead of plan  Identified plants and pipelines for divestiture

Waterflood Drilling Oxy-Permian Fields Existing FST Fields SAGA New Permian Fields  37 wells planned  4 waterflood installations  3D mapping to evaluate potential development –Wolfcamp –Devonian –Delaware –Spraberry  Focus on costs and production optimization 2. ACQUISITION PROGRAM – 2004 Permian Basin Activity

2004 Drilling Inventory  6 Frio wells (100% WI)  2 Yegua wells (100% WI)  7 Wilcox wells (53-75% WI)  1 Vicksburg well (100% WI) McAllen Acquisition Existing FST Fields South Bonus Acquisition New Permian Acquisition Texas Katy South Bonus Bonus Houston Guerra McAllen Ranch 2. ACQUISITION PROGRAM – 2004 South Texas Activity

2. ACQUISITION PROGRAM – South Texas  Took over operations immediately and acquired 3-D seismic (175 sq. miles)  Drilled 11 shallow Frio wells (91% success rate)  Increased gross production from 4 MMcfe/d to 19 MMcfe/d  Completed first Yegua well – Beard #1 (7 MMcfe/d) and the McMillian #2 well (3 MMcfe/d)  Currently drilling first Deep Wilcox well

BA 542 A-1ST, A-4ST BA 491 #4 Diablo MI 666 #1 Lonewolf GAA-98 #1 HI A-467 A-16 HI A-469 A-4ST Twin Crossbow HI 53 #4 ChaCha HI 116 SM 6 A-22 Grasshopper WC 226 HI A-416 B-1ST Sidewinder SM 76 B-15ST Vega WC 111/112 VR 14 I-3 Loc VR 102 A-2, A-3 Javlin SM 105 A-5 Roadrunner SM 115 Crystal C-1ST C6, C7 SMI 149/150 Phoenix EI 273/284 Blackbird EI 281 EI 43 #1ST ST 211 A-1ST Spitfire ST 72 #22 & #8ST Panhandle ST 288 Starfish CA 26 Mackeral MP 98/99 McAllen Ranch Bonus Katy Sweet Lake Twin Island 2. ACQUISITION PROGRAM – 2004 Gulf of Mexico Activity  21 Wells planned: –17 Shelf –3 Deep Shelf –1 Sub-Salt  Attack Unocal acquisition properties  Installation of two new production facilities  New discoveries at VR 102, WC 112, and Eugene Island 273

3. LOWER EXPOSURE TO FRONTIER EXPLORATION  Allocate % of invested capital to frontier exploration compared with historical 20%  Fewer frontier areas  Reinvest capital in “traditional areas”  Evaluate significant acreage position for leverage, trades or monetization (saved $45 mm in 2003)  The purpose of Exploration is…. Production!

2003 by Category 58% Acquisitions 3. LOWER EXPOSURE TO FRONTIER EXPLORATION 2004 by Category 2003 by Business Unit 2004 by Business Unit 14% Exploration 28% Development 28% Exploration 72% Development 9% Alaska 57% Gulf Coast 6% Canada 27% Western 1% Int’l 11% Alaska 53% Gulf Coast 11% Canada 18% Western 7% Int’l Frontier 14% Frontier 9% $300 MM $729 MM

3. LOWER EXPOSURE TO FRONTIER EXPLORATION Production Growth Profile – Bcfe Gulf CoastWesternAlaskaCanadaTotal e e e e 2002

South Timbalier #72 –19,025’ total depth –90 days from spud to initial sales –Tested 2,000 Bbls/d and 1.4 MMcf/d at 5,500 psi Deep Shelf Performance 3. LOWER EXPOSURE TO FRONTIER EXPLORATION West Cameron #112 –15,325’ total depth –On-line in 3Q 2004 –Tested 15.4 MMcf/d and 322 Bbls/d at 10,475 psi

3. LOWER EXPOSURE TO FRONTIER EXPLORATION  Increased production from zero to 28 MMcfe/d in approximately 1 year  Completed 3 wells (100% success rate)  Identified 2 additional locations to drill in 2004 Vermilion Shelf (100% Working Interest)

3. LOWER EXPOSURE TO FRONTIER EXPLORATION  Achieved record production in 2004  Produces in excess of 20% of Canada’s net total production  Acquired additional 3-D seismic in 1Q 2004  Currently completing two wells  Drilling costs reduced significantly in field Narraway Field, Canada

4. MAINTAIN STRONG BALANCE SHEET  Maintain liquidity to allow flexibility for acquisitions –Plan to generate in 2004 $200 million of excess cash from operations and divestitures  Debt : Book capitalization target of 30-40%  Manage debt portfolio to reduce refinancing risks and minimize cost of capital  Access public capital markets to fund larger opportunities as appropriate  Actively manage commodity price and interest rate risks

INTERIM 6 MONTH “REPORT CARD”  Ahead of schedule: –Cost reductions –Acquisition initiatives –Production growth  On schedule: –Capital expenditure reallocation –Strengthening of balance sheet –Leadership/culture changes  Behind schedule on reserve growth

SUMMARY – Disciplined People, Disciplined Action  Costs are being reduced across the board  Acquisition program has been successfully “kicked-off”  Capital is being allocated to traditional areas  ROCE and free cash flow is being rewarded  Balance sheet is strengthening  Attractive valuation reflects early stage of turnaround

CAUTIONARY STATEMENTS The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use the terms “probable” and “possible” reserves, reserve “potential” or “upside” or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines strictly prohibit Forest from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by us. Investors are urged to consider closely the disclosure in Forest’s Form 10-K for fiscal year ended December 31, 2003, available from Forest at 1600 Broadway, Suite 2200, Denver, CO 80202, Attention: Investor Relations. You can also obtain this form from the SEC by calling SEC This presentation may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurances that expected results 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, operating risks, regulatory changes and other risk factors as described in the Company’s 2003 Annual Report on Form 10-K as filed with the Securities and Exchange Commission.