Exhibit 99.1

Forest Oil Announces Second Quarter 2012 Results

Second Quarter 2012 Net Sales Volumes of 335 MMcfe/d; Unchanged from Second Quarter 2011

Second Quarter 2012 Oil Net Sales Volumes of 8.3 MBbls/d; Organically Increased 27% from Second Quarter 2011

Continued Success in the Panhandle Area Oil Zones; Completed One Hogshooter Well with a 24-Hour Maximum Production Rate of 2,800 Boe/d (54% Oil) and Two Cleveland Wells with an Average 24-Hour Maximum Production Rate of 1,000 Boe/d (71% Oil)

Completed Four Eagle Ford Wells with an Average 24-Hour Maximum Production Rate of 817 Boe/d

DENVER--(BUSINESS WIRE)--July 30, 2012--Forest Oil Corporation (NYSE:FST) (Forest or the Company) today announced financial and operational results for the second quarter of 2012.

The comparative second quarter of 2011 information contained in this press release, unless otherwise indicated, relates only to the retained operations of Forest and excludes the operations of Lone Pine Resources Inc. (NYSE:LPR) (TSX:LPR), which was spun-off to Forest shareholders on September 30, 2011.

Forest noted the following results for the three months ended June 30, 2012:

• Net sales volumes of 335 MMcfe/d were unchanged from the second quarter of 2011 and decreased 1% from the first quarter of 2012 due to 8 MMcfe/d of production downtime associated primarily with third-party plant curtailments in the Panhandle Area
• Oil net sales volumes of 8.3 MBbls/d organically increased 27% from the second quarter of 2011 and decreased 1% from the first quarter of 2012
• Adjusted net earnings of $7 million decreased 76% from the corresponding 2011 period
• Adjusted EBITDA of $122 million decreased 14% from the corresponding 2011 period
• Adjusted discretionary cash flow of $89 million decreased 15% from the corresponding 2011 period

Due to a non-cash ceiling test write-down of $349 million and a related non-cash increase in the valuation allowance on deferred tax assets of $290 million, Forest reported a net loss of $511 million, or $(4.44) per share, for the three months ended June 30, 2012.

Patrick R. McDonald, Interim CEO, stated, “The second quarter represented an operational and strategic realignment of priorities at Forest. We have increased focus on our oil projects, and we saw good results during the quarter from the Hogshooter and Cleveland oil plays in the Panhandle Area and from our Eagle Ford program. These high-quality assets form the foundation of our core oil portfolio.

“Strategically we are committed and have taken the first step to improve our financial strength by adjusting our second half capital program to be near projected cash flow. With our remaining 2012 capital budget mainly targeting higher-margin oil opportunities, we expect to deliver second half oil volume growth that is 10-15% higher than the first half of the year. We have reduced spending in, and will have lower production from, lower-return liquids and natural gas projects.

“Operational execution is critical in bringing forward the value of our assets as their quality has not been adequately reflected in our recent results. The entire Forest team is focused on and committed to delivering this value to our shareholders.”

SECOND QUARTER 2012 RESULTS

For the three months ended June 30, 2012, Forest reported a net loss of $511 million, or $(4.44) per diluted share. This compares to Forest's net earnings from continuing operations of $29 million, or $0.26 per diluted share, in the corresponding 2011 period. The net loss for the three months ended June 30, 2012 was affected by the following items:

• The effect of a ceiling test write-down of $349 million ($223 million net of tax)
• An increase in the valuation allowance on deferred tax assets (primarily driven by the ceiling test write-down) of $290 million ($290 million net of tax)
• The effect of potential contractual severance costs and accelerated stock-based compensation costs (based on grant-date valuations) associated with the termination of Forest’s prior Chief Executive Officer of $6 million ($4 million net of tax)
• The income tax effect of non-deductible stock-based compensation of $2 million ($2 million net of tax)

Without the effect of these items, Forest's adjusted net earnings and earnings per share on a diluted basis for the three months ended June 30, 2012 decreased 76% to $7 million, or $0.06 per diluted share, compared to $29 million, or $0.25 per diluted share, in the corresponding 2011 period. Forest's adjusted EBITDA for the three months ended June 30, 2012 decreased 14% to $122 million compared to $142 million in the corresponding 2011 period. Forest's adjusted discretionary cash flow for the three months ended June 30, 2012 decreased 15% to $89 million compared to $106 million in the corresponding 2011 period. The decrease in each of these three items was primarily attributable to a significant decrease in natural gas prices over the reported periods.

Net Sales Volumes, Average Realized Prices, and Revenues

Forest's net sales volumes for the three months ended June 30, 2012 were unchanged from the corresponding 2011 period and decreased 1% from the first quarter of 2012. Net sales volumes were negatively impacted by 8 MMcfe/d in the second quarter of 2012 due primarily to downtime associated with a fire at Eagle Rock’s Phoenix-Arrington Ranch natural gas processing facility in Hemphill County, Texas. The facility returned to operations on July 3, 2012. The following table details the components of net sales volumes, average realized prices, and revenues for the three months ended June 30, 2012:

Total Cash Costs

Forest's total cash costs and per-unit cash costs decreased 29% in the second quarter of 2012 compared to the corresponding 2011 period due primarily to a decrease in current income tax expense. Production expense also decreased 5% in the second quarter of 2012 over the corresponding 2011 period due to a decrease in production taxes.

The following table details the components of total cash costs for the comparative periods:

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Total cash costs is a non-GAAP measure that is used by management to assess the Company’s cash operating performance. Forest defines total cash costs as all cash operating costs, including production expense; general and administrative expense (excluding stock-based compensation); interest expense; and current income tax expense.

Depreciation and Depletion Expense

Forest's per-unit depreciation and depletion expense for the three months ended June 30, 2012 increased 39% to $2.39 per Mcfe compared to $1.72 per Mcfe in the corresponding 2011 period. The increase was primarily the result of higher finding and development costs associated with Forest's oil and liquids focused capital expenditure program.

Ceiling Test Write-Down and Deferred Tax Asset Valuation Allowance

Forest recorded a non-cash ceiling test write-down of $349 million in the second quarter of 2012 pursuant to the ceiling test limitation prescribed by the Securities and Exchange Commission for companies using the full cost method of accounting. The write-down was primarily a result of a significant decline in natural gas prices used in the ceiling test calculation to $3.15 per Mcf in the second quarter of 2012 from $3.73 per Mcf in the first quarter of 2012. Based on current commodity prices, Forest expects further decreases in the natural gas and NGL prices used in the ceiling test calculation which will likely result in a ceiling test write-down in the third quarter of 2012. As a result of this quarter’s ceiling test write-down and the anticipated ceiling test write-down next quarter, Forest recorded a valuation allowance of $290 million against its deferred tax assets.

Total Capital Expenditures

Forest's exploration and development capital expenditures for the three months ended June 30, 2012 were $198 million compared to $193 million in the corresponding 2011 period.

Forest’s land and leasehold acquisition costs for the three months ended June 30, 2012 were $9 million compared to $52 million in the corresponding 2011 period. The land and leasehold acquisitions in 2012 and 2011 were a result of Forest's decision to expand exposure to prospective oil and liquids-rich areas.

The following table summarizes total capital expenditures for the comparative periods (in thousands):

OPERATIONAL PROJECT UPDATE

Panhandle Area

Forest holds approximately 179,000 gross acres (109,000 net) in the Panhandle Area.

Since Forest's last earnings release, one Missourian Wash Hogshooter well (63% working interest) was completed with a 24-hour maximum production rate of 1,500 Bbls/d of oil, 570 Bbls/d of NGLs, and 4.4 MMcf/d of natural gas, for a total equivalent rate of 2,800 Boe/d (54% oil). To date, the Company has completed five Hogshooter wells that have had an average 24-hour maximum production rate of 3,050 Boe/d.

Forest also continues to have success in its Cleveland oil program. Since the Company’s last earnings release, two wells (88% working interest) were completed in the Kelln field of the Panhandle Area with an average 24-hour maximum production rate of 1,000 Boe/d (71% oil).

By the fourth quarter of 2012, Forest plans to further reduce its operated rigs from four to two in the Panhandle Area. These rigs will target the Hogshooter and other higher-return oil intervals.

Eagle Ford Shale

Forest holds approximately 112,000 gross acres (103,000 net) in the oil-bearing section of the Eagle Ford Shale play.

Drilling in the Eagle Ford is focused in the central fairway of Forest’s acreage position, where the Company has experienced the most consistent results and has the largest, most contiguous block of acreage. As highlighted in the Company’s July 9^th press release, Forest has initiated a development plan that should allow the Company to hold approximately 40,000 net acres over the next several years by employing a two-rig drilling program. Importantly, this acreage position has 500 total locations identified based on 80-acre spacing. The Company will look to monetize a portion of the remaining acreage through small divestitures or farm-outs.

Since the recent Eagle Ford operational update on July 9^th, the Company has completed one additional horizontal well (100% working interest), which reached a 24-hour maximum production rate of 907 Boe/d (98% oil).

East Texas / North Louisiana - Cotton Valley & Haynesville / Bossier Shale

Forest holds approximately 163,000 gross acres (123,000 net) in the East Texas / North Louisiana area.

Since Forest's last earnings release, four horizontal Cotton Valley wells (100% working interest) in East Texas were completed with an average 24-hour maximum production rate of 8.7 MMcfe/d, including 580 Bbls/d of oil and natural gas liquids or 40% of total equivalent production.

By the fourth quarter of 2012, Forest plans to reduce its operated rigs from two to one targeting the Cotton Valley liquids interval.

NATURAL GAS, NATURAL GAS LIQUIDS, AND OIL DERIVATIVES

As of July 30, 2012, Forest had natural gas, natural gas liquids, and oil derivatives in place for 2012 and 2013 covering the aggregate average daily volumes and weighted average prices shown below. Since the last earnings release, Forest added an additional 25.8 Bbtu/d of Calendar 2013 natural gas swaps at $3.78 per MMBtu.

In connection with several swaps shown in the table above, Forest granted swaption instruments to counterparties in exchange for Forest receiving premium hedged prices on the swaps. The table below sets forth the outstanding swaptions as of July 30, 2012:

NON-GAAP FINANCIAL MEASURES

Adjusted Net Earnings

In addition to reporting net earnings (loss) from continuing operations as defined under generally accepted accounting principles (GAAP), Forest also presents adjusted net earnings from continuing operations (adjusted net earnings), which is a non-GAAP performance measure. Adjusted net earnings consists of net earnings (loss) from continuing operations after adjustment for those items shown in the table below. Adjusted net earnings does not represent, and should not be considered an alternative to, GAAP measurements such as net earnings (loss) from continuing operations (its most comparable GAAP financial measure), and Forest's calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items shown below, Forest believes that the measure is useful to investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies in the oil and gas industry. Forest's management does not view adjusted net earnings in isolation and also uses other measurements, such as net earnings (loss) from continuing operations and revenues to measure operating performance. The following table provides a reconciliation of net earnings (loss) from continuing operations, the most directly comparable GAAP measure, to adjusted net earnings for the periods presented (in thousands):

Adjusted EBITDA

In addition to reporting net earnings (loss) from continuing operations as defined under GAAP, Forest also presents adjusted net earnings before interest, income taxes, depreciation, depletion, and amortization from continuing operations (adjusted EBITDA), which is a non-GAAP performance measure. Adjusted EBITDA consists of net earnings (loss) from continuing operations after adjustment for those items shown in the table below. Adjusted EBITDA does not represent, and should not be considered an alternative to, GAAP measurements such as net earnings (loss) from continuing operations (its most comparable GAAP financial measure), and Forest's calculations thereof may not be comparable to similarly titled measures reported by other companies. By eliminating the items shown below, Forest believes the measure is useful in evaluating its fundamental core operating performance. Forest also believes that adjusted EBITDA is useful to investors because similar measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies in the oil and gas industry. Forest's management uses adjusted EBITDA to manage its business, including in preparing its annual operating budget and financial projections. Forest's management does not view adjusted EBITDA in isolation and also uses other measurements, such as net earnings (loss) from continuing operations and revenues to measure operating performance. The following table provides a reconciliation of net earnings (loss) from continuing operations, the most directly comparable GAAP measure, to adjusted EBITDA for the periods presented (in thousands):

Adjusted Discretionary Cash Flow

In addition to reporting net cash provided by operating activities of continuing operations as defined under GAAP, Forest also presents adjusted discretionary cash flow of continuing operations (adjusted discretionary cash flow), which is a non-GAAP liquidity measure. Adjusted discretionary cash flow consists of net cash provided by operating activities of continuing operations after adjustment for those items shown in the table below. This measure does not represent, and should not be considered an alternative to, GAAP measurements such as net cash provided by operating activities of continuing operations (its most comparable GAAP financial measure), and Forest's calculations thereof may not be comparable to similarly titled measures reported by other companies. Forest's management uses adjusted discretionary cash flow as a measure of liquidity and believes it provides useful information to investors because it assesses cash flow from operations before changes in operating assets and liabilities, which fluctuate due to the timing of collections of receivables and the settlements of liabilities, and other items. Forest's management uses adjusted discretionary cash flow to manage its business, including in preparing its annual operating budget and financial projections. This measure does not represent the residual cash flow available for discretionary expenditures. Forest’s management does not view adjusted discretionary cash flow in isolation and also uses other measurements, such as net cash provided by operating activities of continuing operations to measure operating performance. The following table provides a reconciliation of net cash provided by operating activities of continuing operations, the most directly comparable GAAP measure, to adjusted discretionary cash flow for the periods presented (in thousands):

Net Debt

In addition to reporting total debt as defined under GAAP, Forest also presents net debt, which is a non-GAAP debt measure. Net debt consists of the principal amount of debt adjusted for cash and cash equivalents at the end of the period. Forest's management uses net debt to assess Forest's indebtedness. The following table sets forth the components of net debt (in thousands):

TELECONFERENCE CALL

A conference call is scheduled for Tuesday, July 31, 2012, at 12:00 PM MT to discuss the release. You may access the call by dialing toll free 800.706.7745 (for U.S./Canada) and 617.614.3472 (for International) and request the Forest Oil teleconference (ID # 59802625). The conference call will also be webcast live on the Internet and can be accessed by going to the Forest Oil website at www.forestoil.com in the “Investor Relations” section of the website. A Q&A period will follow.

A replay of the conference call will be available through August 14, 2012. You may access the replay by dialing toll free 888.286.8010 (for U.S./Canada) and 617.801.6888 (for International), conference ID # 72934546. An archive of the conference call webcast will also be available at www.forestoil.com in the “Investor Relations” section of the website.

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, its ability to replace production, its ability to compete with larger producers, 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.

CONTACT:
Forest Oil Corporation
Larry C. Busnardo, 303-812-1441
Director – Investor Relations