Enerplus Sells Non-Core Assets and Maintains Production Guidance
Canada NewsWire
CALGARY, June 27, 2013
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
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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. |
SOURCE Enerplus Corporation
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