CALGARY, Feb. 3, 2016 /CNW/ - Enerplus Corporation
("Enerplus" or the "Company") (TSX & NYSE: ERF) has completed
one of the divestments announced January 11,
2016 of certain Canadian natural gas properties for cash
proceeds of approximately $183
million, before closing adjustments. Proceeds from this
transaction were used to reduce the Company's outstanding
indebtedness providing additional financial flexibility.
Production from the properties divested under this transaction
was expected to average approximately 4,700 BOE per day (97 per
cent natural gas) in 2016.
The second transaction also announced January 11, 2016 relating to the divestment of
additional Canadian natural gas properties is expected to close
during the first quarter of 2016.
About Enerplus
Enerplus is a North American energy producer with a portfolio of
high quality oil and gas assets in resource plays that offer
significant organic growth potential. We are focused on creating
value for our investors through the execution of a disciplined
capital investment strategy that supports the successful
development of our properties. We are a responsible developer of
resources that strives to provide investors with a competitive
return comprised of both growth and dividend income.
CURRENCY AND ACCOUNTING PRINCIPLES
All amounts in this news release are stated in Canadian
dollars unless otherwise specified.
BARRELS OF OIL EQUIVALENT
This news release also contains references to "BOE" (barrels
of oil equivalent). Enerplus has adopted the standard of six
thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl) when
converting natural gas to BOEs. BOEs may be misleading,
particularly if used in isolation. The foregoing conversion ratios
are based on an energy equivalency conversion method primarily
applicable at the burner tip and do not represent a value
equivalency at the wellhead. Given that the value ratio based on
the current price of oil as compared to natural gas is
significantly different from the energy equivalent of 6:1,
utilizing a conversion on a 6:1 basis may be misleading.
PRESENTATION OF PRODUCTION INFORMATION
Under U.S. GAAP oil and gas sales are generally presented net
of royalties and U.S. industry protocol is to present production
volumes net of royalties. Under Canadian industry protocol oil and
gas sales and production volumes are presented on a gross basis
before deduction of royalties. In order to continue to be
comparable with our Canadian peer companies, the summary results
contained within this news release presents our production and BOE
measures on a before royalty company interest basis. All production
volumes and revenues presented herein are reported on a "company
interest" basis, before deduction of Crown and other royalties,
plus Enerplus' royalty interest.
FORWARD-LOOKING INFORMATION AND STATEMENTS
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. 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.
Accordingly, holders of Enerplus shares and potential investors are
cautioned that events or circumstances could cause results to
differ materially from those predicted.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation
SOURCE Enerplus Corporation