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Enerplus sells non-core assets and maintains production guidance

By Religare
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Enerplus Corporation announced the sale of its various non-core assets in Canada for gross proceeds of approximately USD 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 per cent 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 per cent working interest in the Pouce Coupe South Boundary B Unit #1 for approximately USD 30 million. Enerplus is currently the operator of this property and now has an approximate 100 per cent 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 per cent. The property has an average netback of approximately USD 50/BOE.

Year-to-date, Enerplus will have sold or has agreements to sell approximately USD 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.

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Story first published: Friday, June 28, 2013, 12:42 [IST]
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