Enerplus Closes Purchase of Bakken Oil Assets in North Dakota
October 18 2010 - 5:00AM
PR Newswire (Canada)
CALGARY, Oct. 18 /CNW/ -- CALGARY, Oct. 18 /CNW/ - Enerplus
Resources Fund ("Enerplus") is pleased to announce the closing of
the previously disclosed purchase of 46,500 net acres of land in
North Dakota prospective for Bakken crude oil for US$456 million
before closing adjustments. This acquisition materially expands
Enerplus' current land position to over 70,000 net acres (109
sections) in the Fort Berthold area, the majority of which is now
operated by Enerplus with a greater than 90% working interest.
Current production from this project is approximately 4,000
bbls/day. As drilling plans are executed over the next five years,
production is expected to grow to over 20,000 BOE/day. 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. FORWARD-LOOKING INFORMATION AND STATEMENTS This news
release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate",
"guidance", "objective", "ongoing", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements. In
particular, but without limiting the foregoing, this news release
contains forward-looking information and statements pertaining to
future production growth. This news release also contains estimates
of reserves which are by their nature estimates that the quantities
described exist in the amounts estimated. The forward-looking
information and statements contained in this news release reflect
several material factors and expectations and assumptions of
Enerplus including, without limitation: that the properties
acquired by Enerplus will perform as anticipated; the accuracy of
Enerplus' estimates of oil and gas reserves and production
potential for the properties being acquired; the general
continuance of current or, where applicable, assumed industry
conditions and tax and regulatory regimes; availability of cash
flow, debt and/or equity sources to fund Enerplus' capital and
operating requirements as needed; and certain commodity price and
other cost assumptions. Enerplus believes the material factors,
expectations and assumptions reflected in the forward-looking
information and statements are reasonable at this time but no
assurance can be given that these factors, expectations and
assumptions will prove to be correct. The forward-looking
information and statements included in this news release are not
guarantees of future performance and should not be unduly relied
upon. Such information and statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking information or statements including, without
limitation: inaccurate estimates of oil and gas reserves,
production estimates and drilling results; changes in commodity
prices; unanticipated drilling or operating results or production
declines; changes in tax or environmental laws or royalty rates;
increased debt levels or debt service requirements; a lack of
capital to conduct planned capital expenditures, including limited,
unfavourable or no access to debt or equity capital markets;
increased costs and expenses; the impact of competitors; reliance
on industry partners; and certain other risks detailed from time to
time in the Fund's public disclosure documents including, without
limitation, those risks identified in our management's discussion
and analysis for the year ended December 31, 2009 and in the Fund's
Annual Information Form for the year ended December 31, 2009,
copies of which are available on the Fund's SEDAR profile at
www.sedar.com and which also form part of the Fund's Form 40-F for
the year ended December 31, 2009, a copy of which is available on
EDGAR at www.sec.gov. The forward-looking information and
statements contained in this news release speak only as of the date
of this release and none of the Fund or its subsidiaries assumes
any obligation to publicly update or revise them to reflect new
events or circumstances, except as may be required pursuant to
applicable laws. 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 regarding this news release, please contact
our Investor Relations department at 1-800-319-6462 or email
investorrelations@enerplus.com
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