Forest Oil Corporation has closed the previously announced sale of the remainder of its Permian Basin properties in West Texas and New Mexico for approximately $800 million to SandRidge Exploration and Production, LLC, a wholly-owned subsidiary of SandRidge Energy, Inc., subject to customary post-closing purchase price adjustments.

The proceeds from this sale will be used to repay all outstanding borrowings under Forest's U.S. and Canadian credit facilities, redeem the Company's 7 ¾% Senior Notes due 2014, fund any capital expenditures in excess of discretionary cash flow, pay the current tax liability as a result of this transaction, which is estimated to be $55 - $75 million, and for other corporate purposes. In connection with the closing of this transaction, the global borrowing base under Forest's credit facilities has been reduced to $1.3 billion.

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