CALGARY, June 27, 2013 /CNW/ - Enerplus Corporation
("Enerplus") (TSX: ERF) (NYSE: ERF) is pleased to announce that we
have entered into agreements to sell various non-core assets in
Canada for gross proceeds of
approximately $80 million in order to
further improve the focus and concentration within our
portfolio.
These assets consist primarily of non-operated properties
producing approximately 1,000 BOE/day, of which roughly 90% is
weighted to crude oil and natural gas liquids. The properties are
being sold to multiple parties and we anticipate closings to occur
during the third quarter of 2013.
In addition to these sales, we have also acquired an incremental
50% working interest in the Pouce Coupe South Boundary B Unit #1
for approximately $30 million.
Enerplus is currently the operator of this property and now has an
approximate 100% working interest. The additional acquired
interests in this light oil waterflood property produce
approximately 375 BOE/day and have a low historical decline rate of
roughly 5%. The property has an average netback of
approximately $50/BOE.
Year-to-date, Enerplus will have sold or has agreements to sell
approximately $115 million of
non-core assets, net of acquisitions, representing approximately
1,400 BOE/day of net production. Despite the sale of this
production, we are maintaining our production guidance for 2013
given the strong operational performance to date. We now
expect annual average production volumes will average approximately
85,000 BOE/day, at the high end of our previous guidance
range. All other operational guidance remains
unchanged. As a result of these divestment proceeds and the
continued performance of our operations, our financial flexibility
has improved and our debt-to-funds flow ratio is now expected to be
1.6 times at year end, unchanged from year-end 2012.
TD Securities acted as advisor to Enerplus on these
divestments.
Ian C. Dundas
Incoming President & Chief Executive Officer
Enerplus Corporation
Except for the historical and present factual information
contained herein, the matters set forth in this news release,
including words such as "expects", "projects", "plans" and similar
expressions, are forward-looking information that represents
management of Enerplus' internal projections, expectations or
beliefs concerning, among other things, future operating results
and various components thereof or the economic performance of
Enerplus. The projections, estimates and beliefs contained in such
forward-looking statements necessarily involve known and unknown
risks and uncertainties, which may cause Enerplus' actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These
risks and uncertainties include, among other things, those
described in Enerplus' filings with the Canadian and U.S.
securities authorities. Accordingly, holders of Enerplus
shares and potential investors are cautioned that events or
circumstances could cause results to differ materially from those
predicted.
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SOURCE Enerplus Corporation