Forest Oil Announces Initial Public Offering of Lone Pine Resources Inc.

DENVER--(BUSINESS WIRE)--Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced that Lone Pine Resources Inc. (Lone Pine), a wholly owned subsidiary of Forest, has commenced an initial public offering of 15,000,000 shares of common stock of Lone Pine, pursuant to a registration statement on Form S-1 (including a U.S. prospectus) previously filed with the U.S. Securities and Exchange Commission (SEC) and a Canadian preliminary prospectus previously filed in each of the provinces of Canada other than Quebec. Lone Pine intends to grant the underwriters a 30-day over-allotment option to purchase up to 2,250,000 additional shares of common stock. The common stock being offered to the public has been conditionally approved for listing on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “LPR,” subject to official notice of issuance and fulfilling all listing requirements of each exchange.

Based on the shares of common stock to be offered, Forest would own 82.3% of the outstanding shares of Lone Pine’s common stock following completion of the offering, or 80.2% if the underwriters exercise their over-allotment option in full. Forest intends to distribute, or spin-off, to Forest’s shareholders its remaining ownership in Lone Pine approximately four months following completion of the offering.

A registration statement relating to Lone Pine’s shares of common stock has been filed with the SEC, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities described above, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

A preliminary prospectus containing important information relating to these securities has been filed with the securities regulatory authorities in each of the provinces of Canada other than Quebec, but has not yet become final for the purposes of the sale of securities. The preliminary prospectus is subject to completion or amendment. These securities may not be sold and no offer to buy these securities will be accepted until after a receipt for a final prospectus has been issued in the Canadian offering jurisdictions.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, and TD Securities (USA) LLC are acting as joint book-running managers for the offering in the United States. BMO Capital Markets Corp., Scotia Capital (USA) Inc, and Wells Fargo Securities, LLC are acting as senior co-managers for the offering in the United States. CIBC World Markets Inc., RBC Dominion Securities Inc., BNP Paribas Securities Corp., Howard Weil Incorporated, Johnson Rice & Company L.L.C., Raymond James & Associates, Inc., and Tudor, Pickering, Holt & Co. Securities, Inc. are acting as co-managers for the offering in the United States. J.P. Morgan Securities Canada Inc., Credit Suisse Securities (Canada), Inc., and TD Securities Inc. are acting as joint book-running managers for the offering in Canada. BMO Nesbitt Burns Inc., and Scotia Capital Inc. are acting as senior co-managers for the offering in Canada. CIBC World Markets Corp., RBC Dominion Securities Inc., FirstEnergy Capital Corp., Peters & Co. Limited, and Raymond James Ltd. are acting as co-managers for the offering in Canada.

This offering will be made only by means of a prospectus. Prospective purchasers should carefully review the prospectus.

Copies of the U.S. written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from the offices of:

J.P. Morgan	Credit Suisse Securities (USA)
Via Broadridge Financial Solutions	Attn: Prospectus Department
1155 Long Island Avenue	One Madison Avenue
Edgewood, New York 11717	New York, NY 10010
Toll Free: 1 [phone]	Toll Free: 1 [phone]

Copies of the Canadian preliminary prospectus, when available, may be obtained from the offices of:

Credit Suisse Securities (Canada)	TD Securities via Symcor, NPM
Attn: Michael Chow	1625 Tech Avenue
1 First Canadian Place	Mississauga, Ontario L4W 5P5
Suite 2900	Canada
Toronto, Ontario M5X 1C9	[phone]
Canada
[phone]

Forest Oil Corporation is engaged in the acquisition, exploration, development, and production of natural gas and liquids in North America and selected international locations. Forest's principal reserves and producing properties are located in the United States in Arkansas, Louisiana, Oklahoma, Texas, Utah, and Wyoming, and in Canada. Forest's common stock trades on the New York Stock Exchange under the symbol FST.

Lone Pine Resources Inc. is engaged in the exploration and development of natural gas and liquids in Canada. Lone Pine’s principal reserves, producing properties, and exploration prospects are located in Canada in the provinces of Alberta, British Columbia, and Quebec and the Northwest Territories.