ENERPLUS CLOSES SALE OF KIRBY AND OTHER NON-CORE ASSETS
October 01 2010 - 5:03PM
PR Newswire (Canada)
CALGARY, Oct. 1 /CNW/ -- CALGARY, Oct. 1 /CNW/ - Enerplus Resources
Fund ("Enerplus") has closed the previously announced sale of our
100% working interest in the Kirby oil sands lease for proceeds of
$405 million. TD Securities Inc. acted as exclusive advisor to
Enerplus on this transaction. Enerplus has also closed the
previously announced sale of 2,500 BOE/day of non-core production
and 9.3 million BOE of proved plus probable reserves for proceeds
of $158.5 million ($153 million after closing adjustments). This
production was comprised of 54% crude oil and natural gas liquids
and 46% natural gas located primarily in British Columbia and
Alberta from approximately 70 properties. RBC Rundle acted as
exclusive advisor to Enerplus on this divestment package. The
proceeds of these sales will be used to reduce outstanding bank
debt resulting from our previously announced Bakken/tight oil and
Marcellus property acquisitions. Electronic copies of our financial
statements, press releases, and other public information are
available on our website at www.enerplus.com. INFORMATION REGARDING
DISCLOSURE IN THIS NEWS RELEASE All amounts in this news release
are stated in Canadian dollars unless otherwise specified. Where
applicable, natural gas has been converted to barrels of oil
equivalent ("BOE") based on 6 Mcf:1 BOE. The BOE rate is based on
an energy equivalent conversion method primarily applicable at the
burner tip and does not represent a value equivalent at the
wellhead. Use of BOE in isolation may be misleading. In accordance
with Canadian practice, production volumes and revenues are
reported on a gross basis, before deduction of Crown and other
royalties, unless otherwise stated. Unless otherwise specified, all
reserves volumes in this news release (and all information derived
therefrom) are based on "company interest reserves" using forecast
prices and costs. "Company interest reserves" consist of "gross
reserves" (as defined in National Instrument 51-101 adopted by the
Canadian securities regulators ("NI 51-101")) plus Enerplus'
royalty interests in reserves. "Company interest reserves" are not
a measure defined in NI 51-101 and do not have a standardized
meaning under NI 51-101. Accordingly, our company interest reserves
may not be comparable to reserves presented or disclosed by other
issuers. NOTICE TO U.S. READERS The oil and natural gas reserves
information contained in this news release has generally been
prepared in accordance with Canadian disclosure standards, which
are not comparable in all respects to United States or other
foreign disclosure standards. Reserves categories such as "proved
reserves" and "probable reserves" may be defined differently under
Canadian requirements than the definitions contained in the United
States Securities and Exchange Commission rules. In addition, under
Canadian disclosure requirements and industry practice, reserves
and production are reported using gross (or, as noted above,
"company interest") volumes, which are volumes prior to deduction
of royalty and similar payments. The practice in the United States
is to report reserves and production using net volumes, after
deduction of applicable royalties and similar payments. Gordon J.
Kerr President & Chief Executive Officer Enerplus Resources
Fund %CIK: 0001126874 please contact our Investor Relations
department at 1-800-319-6462 or email
investorrelations@enerplus.com
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