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) - December 11, 1998
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 its board of directors has approved an
initial capital budget for 1999 of $60 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: December 14, 1998 By: /s/ Daniel L. McNamara
Daniel L. McNamara
Secretary
FOR IMMEDIATE RELEASE
FOREST OIL CORPORATION ANNOUNCES 1999 CAPITAL BUDGET
DENVER, COLORADO - DECEMBER 11, 1998 - Forest Oil Corporation
announced its board of directors has approved an initial capital
budget for 1999 of $60 million. This compares to an estimate of
$125 million of capital expenditures in 1998, exclusive of
acquisitions, and is significantly below the company's
anticipated cash flow in 1999. The company believes this capital
budget to be sufficient to result in production growth in both
1999 and the year 2000. Expenditures are being directed toward
projects that provide near-term returns in a low hydrocarbon
price environment, toward committed projects and toward a reduced
number of high potential exploration projects primarily in the
northern part of Canada.
Robert S. Boswell, Chief Executive Officer, stated, "Volatility
and the current level of hydrocarbon prices compel the company to
use an abundance of caution with respect to capital expenditures
in 1999. While we believe the underlying longer-term secular
trends for hydrocarbon pricing are quite positive, we intend to
maximize our near-term financial flexibility and manage our
capital conservatively until market conditions improve. Further,
the decline in industry activity has lowered costs in general and
we are able to accomplish more today with fewer dollars than we
have in the past several years. The initial capital budget we
have established for 1999 exposes Forest to an array of both
lower risk production growth projects and higher risk impact
opportunities while providing the company sufficient financial
flexibility to pursue opportunistic situations which might arise.
We feel very positive about the position of the company going
into 1999 despite lower oil and gas prices and are enthused about
the potential of our capital plan."
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 expected results 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, operating risks and other risk factors
as described in the company's 1997 Annual Report on Form 10-K as
filed with the Securities and Exchange Commission.
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 United States in the
Gulf of Mexico, Louisiana, Texas, Oklahoma and Wyoming and in
Canada in Alberta and the Northwest Territories. Forest's common
stock trades on the New York Stock Exchange under the symbol FST.
December 11, 1998
