Forest Oil Corp. has downgraded reserves estimates for Redoubt Shoal in Cook Inlet, Alaska, by 49 MMbbl.

The company completed its integrated field study, finalized its estimate of proved reserves, and received a reserves estimate by third-party engineers, which resulted in estimated proved oil reserves of 8 MMbbl. Forest expects additional downward revisions in its estimated proved reserves for other properties as well. The total could be as high as 150 Bcfe. Reserves were placed at 1,560 Bcfe December 31, 2002. If the downward revision is recorded, estimated proved reserves as of Dec 31, 2003 could be as low as 1,300 Bcfe.

The impact of these revisions on Forest's operating results will include an increase in the depletion rate and depletion expense from 4Q 2003 forward. The consolidated depletion rate for 4Q 2003 is expected to be between $1.80 and $1.90epr Mcfe.

Forest intends to release 2003 results after market close Feb 11, 2004. The company will also provide guidance for 2004 results at that time.