The Early Years

Forest Oil Corporation began operations in 1916 in the Bradford Oil Field of northwestern Pennsylvania. In the early years, the Company was known for its application of improved secondary recovery techniques to increase production from wells that were considered depleted. Through a technique called water flooding, increased quantities of oil were forced to the surface by injecting water into oil-bearing rock formations.

The success of the technique is credited for transforming the fledgling company into a significant oil producer. By 1922, Forest Oil was recognized as an authority in secondary recovery systems. As word spread about the success of the technique, Forest was contracted to water-flood blocks of depleted properties owned by other companies.

Forest's production from secondary recovery systems climbed from 38 barrels of oil per day in 1916 to over 10,000 barrels per day in the late 1920's. Ten years later, Forest Oil was ranked as the largest producer of Pennsylvania Grade crude oil in the country.

In a span of nearly 40 years (1916-1953), Forest produced over 70 million barrels of crude oil through the implementation of secondary recovery techniques.

Post-War Years

Following World War II, Forest broadened its emphasis beyond secondary recovery and moved into the arena of exploration. In the quest for undiscovered oil and natural gas reserves, the Company believed Texas, Oklahoma, Louisiana, and the Rocky Mountain region represented the greatest potential for significant discoveries. In the 1950's, Forest employed over 400 people and had operations in 14 states.

Like its competitors, Forest expanded its search for oil and gas into the Gulf of Mexico off the shore of Louisiana. Forest Oil participated in the first federal offshore lease sale in 1953 and in the 1960's, discovered the Eugene Island 292 Field, one of the largest natural gas fields in the Gulf of Mexico.

During the 1960's and 1970's, Forest drilled onshore for natural gas deep under the plains of Oklahoma and Texas. Forest set an industry drilling depth record in 1964 with a 21,793-foot natural gas "wildcat" well in Pecos County, TX. Five years later, Forest went even deeper with a west Texas well drilled to 24,454 feet. Drilling to a depth greater than 20,000 feet is considered formidable by today's standards. To have accomplished those depths more than 40 years ago is remarkable.

Among Forest's significant onshore discoveries in the '60s and '70s were the Grieve Field in Wyoming, the Elk City Field in Oklahoma, and the Vermejo and McAllen Ranch Fields in Texas.

The Close of the 20th Century

The close of the 20th century was a difficult time for independent oil and gas companies. Weak and frequently volatile pricing for crude oil and natural gas drove many companies out of business. Forest weathered the economic challenges by shrinking in size and consolidating operations. Despite its inability to invest in and expand valuable holdings in the Gulf of Mexico during this down cycle, Forest Oil, unlike many competitors, found a way to survive and positioned itself for expansion when circumstances became more favorable.

In a bold and strategic move in 1996, Forest Oil acquired its Canadian subsidiary, Canadian Forest Oil Ltd. The acquisition significantly diversified Forest's production base by expanding the Company's borders from the Gulf of Mexico to the Beaufort Sea near the Arctic Circle. Believing the demand for natural gas would continue to grow, particularly in the U.S., Forest kept its eye on the vast reserve potential north of the 60th parallel and opted for development despite the remoteness and harsh environment. Forest Oil further enhanced its position in the Northwest Territories with the 1998 purchase of Unocal's holdings in the region.

That same year in the southern region of its operations, Forest expanded its assets to include fields in each parish in the transition zone of South Louisiana.

The Company Today

In the first years of the 21st century, Forest Oil Corporation and its subsidiaries are engaged in the exploration, acquisition, development, production and marketing of natural gas and crude oil in North America and in selected international locations. The Corporation ranks as one of the largest independent exploration and production enterprises in the United States.

From its humble beginnings in the Bradford Oil Field early in the 20th century to North American and selected international operations at the onset of the new millennium, Forest Oil Corporation has grown into a premier company with significant proven reserves.

Through strategic acquisitions, financial discipline, a moderate exploration program and the implementation of advanced technology, Forest Oil is positioned as an industry leader who offers a sound investment decision.

Join us for what promises to be one of the most exciting and productive cycles in the history of Forest Oil Corporation.