SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) - August 1, 1996
FOREST OIL CORPORATION
(Exact name of registrant as specified in its charter)
New York 0-4597 25-0484900
(State or other juris- (Commission (IRS Employer
diction of incorporation) file number) Identification No.)
2200 Colorado State Bank Building, 1600 Broadway, Denver, CO 80202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 812-1400
Item 5. Other Events
For information concerning this item, please refer to Exhibit 99.1
hereto, which is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
(99.1) Forest Oil Corporation press release announcing that
The Anschutz Corporation has exercised its option to purchase 2.25
million shares of Forest's Common stock for $26.2 million.
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FOREST OIL CORPORATION
(Registrant)
Dated: August 7, 1996 By: /s/ Daniel L. McNamara
Daniel L. McNamara
Secretary
FOR IMMEDIATE RELEASE
ANSCHUTZ INCREASES STAKE IN FOREST OIL
DENVER, COLORADO - August 1, 1996 - Forest Oil Corporation
announced today that The Anschutz Corporation ("Anschutz") has
exercised 100% of its option to purchase 2.25 million shares of
Forest's common stock for $26.2 million or approximately $11.64
per share. The option was scheduled to expire on July 27, 1998.
Proceeds received by Forest will be used to fund capital
expenditures in 1996 and 1997.
Robert S. Boswell, Forest's President and Chief Executive
Officer, commented, "We are pleased that The Anschutz
Corporation has decided on an early exercise of its option. The
success of Forest Oil's exploration program in the first half of
1996 has created additional capital requirements for the balance
of the year. We expect to close out the 1996 capital program
above the previously announced $56 million level. For 1997 we
are initially targeting a capital budget of approximately $90
million with roughly two-thirds allocated to the U. S. and one-
third allocated to Canada. A portfolio of projects for 1997 is
currently being developed that would require this level of
capital spending spread over a blend of exploration,
exploitation, development and acquisitions designed to achieve
rates of return similar to those obtained thus far in 1996. It
is our goal to execute the 1997 capital program with no increase
in the company's financial leverage."
Philip F. Anschutz, Chief Executive Officer of The Anschutz
Corporation, stated, "Our additional investment is being made to
ensure that adequate capital is in place to extend Forest Oil's
successful capital program of the first half of 1996 into the
remainder of this year and 1997 without having to access public
markets."
Upon completion of this transaction, Forest will have
approximately 26.9 million shares of common stock outstanding
with Anschutz owning approximately 22%. The company's debt to
total capitalization will have decreased from 53% to 46%, on a
pro forma basis, as of March 31, 1996.
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. Although the company
believes that its expectations are based on reasonable
assumptions, it can give no assurance that its goals will be
achieved. Important factors that could cause actual results to
differ materially from those in the forward looking statements
herein include the timing and extent of changes in commodity
prices for oil and gas, the need to develop and replace reserves,
environmental risks, drilling and operating risks, risks related
to exploration and development, uncertainties about the estimates
of reserves, competition, government regulation and the ability
of the company to meet its stated business goals.
Forest Oil Corporation is engaged in the acquisition,
exploration, development, production and marketing of natural gas
and crude oil in North America. Forest's principal reserves and
producing properties are located in the Gulf of Mexico, Texas,
Oklahoma and Canada. Forest's common and preferred stocks are
traded on the Nasdaq National Market tier of The Nasdaq Stock
Market under the symbols FOIL and FOILO, respectively.
August 1, 1996
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