OPERATIONAL PROJECT UPDATE

Greater Buffalo Wallow Area -- Granite Wash (Texas Panhandle)

Forest is currently completing three operated horizontal Granite Wash wells and is also currently drilling three operated and four non
operated wells in the play.

During 2009 and early 2010, Forest drilled and completed its first four horizontal Granite Wash wells, which produced at an average 24-hour
initial production rate of 30 MMcfe/d. Approximately 60% of the average
24-hour production rate came from oil and condensate and NGLs, which
provide for superior rates of return. The initial rates from these wells
improved during 2009 as Forest drilled longer laterals and added
fracture stages.

Forest holds approximately 135,000 gross acres and 94,000 net acres in the play.

East Texas and Northern Louisiana Haynesville Shale

Forest completed the installation of an amine unit in its Sabine Parish, Louisiana acreage, allowing for the maximum production rate from its
first well, which is expected to increase from its current curtailed
rate of 5.5 MMcfe/d to a rate as high as 15 MMcfe/d. Additionally, the
infrastructure will allow for additional wells to produce at maximum
rates, which Forest expects to bring on throughout 2010 with its one rig
program in Sabine Parish. Forest is currently running an additional two
rigs targeting the Haynesville Shale on its other East Texas and
Northern Louisiana acreage, including Forest's acreage in Red River
Parish.

During 2009, Forest drilled and completed its first four Louisiana horizontal Haynesville Shale wells, which produced at an average 24-hour
initial production rate of 18 MMcfe/d.

Link to full article:

  http://www.marketwatch.com/story/forest-oil-announces-fourth-quarte...