IPAA 2004 Oil & Gas Investment Symposium April 21, 2004

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

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

3. Exploration NORTH AMERICAN OPERATIONAL PROFILE Alaska 12/31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) 132 58 0 Canada 12/31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) 162 51 67 Western 12/31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) 389 61 68 Gulf Coast 12/31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) 613 239 79 Consolidated 12/31/03 Reserves (Bcfe) 2003 Prod. (MMcfe/d) Natural Gas Production (%) 1,296 409 65 Steady Production 2003 Acquisitions 2004 Exploitation Significant Position Gulf Coast 2004 Exploration

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

5. 1. CONTINUED REDUCTION IN COSTS Create a Culture of Cost Discipline • 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

6. 1. CONTINUED REDUCTION IN COSTS - LOE Per Per 2002 Unit 2003 Unit Direct / Workover131 .91 125 .84 Severance / Ad Valorem 13 .09 20 .13 Transportation 14 .10 9 .06 Total 158 1.10 154 1.03 • Aggressive cost reduction on acquired fields • Oxy-Permian monthly LOE reduced by over 40% • Concentrated effort on high-cost non-operated fields $ millions

7. 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

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

9. 2000 – 2001 Program 2003 Program 1. CONTINUED REDUCTION IN COSTS – Drilling (Gross $MM) Offshore South Africa South Timbalier 2000 – 2001 Program 2003 Program Alberta Foothills 2000 – 2002 Program 2003 – 2004 Program

10. 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

11. 2. ACQUISITION PROGRAM – 2003 Activity Purchase Trans. Reserve Price Production Reserves Amount Per Net Undevel. Other Amount (mm) (MMcfe/d) (Bcfe) Mcfe/Res. Acreage Acreage Assets Per Mcfe South Bonus $ 5.8 2 5 $1.07 50,000 32,000 6.4 n/a McAllen 12.5 5 12 1.06 15,000 13,000 2.6 $ .81 Oxy-Permian 33.0 9 34 .97 26,000 - - .97 Unocal 218.8 66 141 1.55 252,000 93,000 15.9 1.41 New Permian 112.9 25 109 1.04 32,000 5,000 - 1.00 Others 8.4 3 21 .40 - - - .27 Total $391.4 110 322 $1.22 375,000 143,000 24.9 $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

12. 2. ACQUISITION PROGRAM - Oxy-Permian • Investment PV10 Reserves • ($MM) ($MM) (Bcfe) $/Mcfe ROCE % • Original Acquisition 33.0 33.0 34.0 0.97 10.4 • Production/cash flow (5.2) (5.2) (1.4) 3.72 • Pump Out Sub-Total 27.8 27.8 32.6 0.85 • Reserve adds/Revisions 0.0 9.4 0.3 - • Remaining Investment 27.8 37.2 32.9 0.84 14.0 • 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

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

14. 37 wells planned 4 waterflood installations 3D mapping to evaluate potential development Wolfcamp Devonian Delaware Spraberry Focus on costs and production optimization Existing FST Fields Oxy-Permian Fields SAGA New Permian Fields 2. ACQUISITION PROGRAM – 2004Permian Basin Activity Waterflood Drilling

15. 2004 Drilling Inventory 6 Frio wells (100% WI) 2 Yegua wells (100% WI) 7 Wilcox wells (53-75% WI) 1 Vicksburg well (100% WI) Existing FST Fields McAllen Ranch McAllen Acquisition South Bonus Acquisition New Permian Acquisition 2. ACQUISITION PROGRAM – 2004South Texas Activity Texas Houston Katy Bonus South Bonus Guerra

16. 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

17. Sweet Lake Starfish CA 26 Spitfire ST 72 #22 & #8ST Twin Island Katy ChaCha HI 116 Vega WC 111/112 SM 6 A-22 EI 43 #1ST Crossbow HI 53 #4 Blackbird EI 281 Mackeral MP 98/99 Bonus VR 102 A-2, A-3 Lonewolf GAA-98 #1 VR 14 I-3 Loc BA 491 #4 Grasshopper WC 226 Sidewinder SM 76 B-15ST Diablo MI 666 #1 Panhandle ST 288 HI A-467 A-16 ST 211 A-1ST Roadrunner SM 115 Javlin SM 105 A-5 Phoenix EI 273/284 BA 542 A-1ST, A-4ST HI A-469 A-4ST Twin McAllenRanch HI A-416 B-1ST Crystal C-1ST C6, C7 SMI 149/150 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

18. 3. LOWER EXPOSURE TO FRONTIER EXPLORATION • Allocate 5 - 10% 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!

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

20. 3. LOWER EXPOSURE TO FRONTIER EXPLORATION Production Growth Profile – Bcfe 18 166 16 19 20 149 144 28 21 20 104 22 23 87 81 2003 2004e 2002 2002 2003 2004e 2002 2003 2004e 2002 2003 2004e 2003 2002 2004e Gulf Coast Western Alaska Canada Total

21. 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 3. LOWER EXPOSURE TO FRONTIER EXPLORATION Deep Shelf Performance • 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

22. 3. LOWER EXPOSURE TO FRONTIER EXPLORATION Vermilion 102 - Shelf (100% Working Interest) • 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

23. 3. LOWER EXPOSURE TO FRONTIER EXPLORATION Narraway Field, Canada • 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

24. 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

25. 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

26. 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

27. 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 1-800-SEC-0330. 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 1934. 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.