8-K

                                
                                
               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) - January 7, 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 the acquisition of oil and natural gas
       properties located onshore Louisiana for approximately
       $231 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:  January 7, 1998            By: /s/ Daniel L. McNamara

                                      Daniel L. McNamara
                                      Secretary

EX-99.1

FOR IMMEDIATE RELEASE
                                
                                
   FOREST OIL TO ACQUIRE LOUISIANA PROPERTIES FOR $231 MILLION


DENVER, COLORADO - JANUARY 7, 1998 - Forest Oil Corporation announced 
today that it has entered into an agreement to purchase 13 oil and 
natural gas properties located onshore in Louisiana from a private 
company for total consideration of approximately $231 million.  The 
consideration will consist of $216.7 million cash and one million 
Forest Oil common shares.  The properties have estimated proved reserves 
of approximately 110 billion cubic feet of natural gas and 12.7 million 
barrels of oil or 186 billion cubic feet equivalent (bcfe).

The purchase has an effective date of January 1, 1998 and is expected to 
close within four weeks.

The acquisition includes 54 producing wells with an average working interest 
of approximately 88%.  Forest will become operator of 12 of the 13 fields 
purchased.  The net 1998 production from the fields is estimated to total 
18.5 bcfe or about 55 million cubic feet equivalent (mmcfe) of oil and 
natural gas per day.  Forest's 1997 production is estimated at approximately 
69 bcfe or about 190 mmcfe per day.

Robert S. Boswell, president and chief executive officer of Forest said, 
"This asset acquisition adds a significant onshore development component 
to our Gulf Coast region's existing offshore portfolio.  After this 
acquisition, Forest will have a significant presence in the southern parishes 
of Louisiana.  These properties have highly concentrated reserves which have 
low operating costs and generate attractive margins.

"Our technical staff has already identified over 100 recompletion projects 
and over 30 new drilling locations that offer very attractive upside potential.
Further, we expect to acquire 3-D seismic surveys over the fields to examine 
deeper exploration opportunities."

Initial financing of the $216.7 million cash portion of the transaction will 
be through borrowings under Forest's revolving senior credit facility, the 
agent bank of which is Chase Manhattan Bank (Chase).  Chase will increase this 
facility to $335 million upon closing of the acquisition.
                                                  
Forest is evaluating various alternatives to permanently finance the 
acquisition and return the company's leverage to approximately 40% by the end 
of 1998.  These alternatives include sales of $50 to 100 million of 
non-strategic assets.  The company has data rooms open for two asset packages 
and will open a third data room within a week. Forest is optimistic that 
permanent financing will be in place by June 30, 1998.

David H. Keyte, executive vice president and chief financial officer of Forest, 
stated, "This acquisition, before and after permanent financing is in place, 
will be accretive to both earnings and cash flow per share.  While leverage 
will initially increase, we have various plans to return the company to a 
more prudent capitalization."

Forest's management will hold a teleconference call at 2:00 p.m. mountain 
standard time on Wednesday, January 7, 1998 to review the transaction.  If 
you would like to participate, please call (800) 946-0785, 
confirmation # 418506.

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 drilling risks, environmental risks, operating risks and other risk 
factors as described in the company's 1996 Annual Report and 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 Gulf of Mexico, Texas, Oklahoma, Wyoming and Canada.  Forest's common 
stock trades on the New York Stock Exchange under the symbol FST.

January 7, 1998