Forest Oil has modified the successfully implemented 4-point strategy launched in the Fall of 2003, to focus on the new asset base. The people of Forest Oil are entrusted with the responsibility to grow the Company according to the tenets of the revised 4-point strategy.

Organic growth is the first tenet of the 4-point strategy. This will be accomplished through exploitation of our new portfolio with strategic emphasis on our resource plays.

Cost reduction in all areas of the business is the second point. In particular, drilling and completion costs play an increasingly important role in the economics of our multi-year and multi-well resource plays. Therefore, these costs will be a primary area of focus for Forest Oil.

Point three addresses the continuation of our successful acquisition and exploitation strategy.

The fourth tenet is the preservation of financial flexibility with continued attention to disciplined spending and free cash flow generation from every business unit. Flexibility allows us future opportunities for capital reallocation following drilling success and acquisition opportunities.