This news release includes forward-looking statements and
information within the meaning of applicable securities laws.
Readers are advised to review the "Forward-Looking Information and
Statements" at the conclusion of this news release.
CALGARY, June 18, 2014 /CNW/ - Enerplus Corporation
("Enerplus") (TSX: ERF) (NYSE: ERF) is pleased to announce that as
a result of our operational performance and continued technical
assessment, including a detailed analysis of well data within the
region, the future outlook of the Fort Berthold Bakken and Three
Forks core area has significantly improved.
Highlights of our assessment include:
- Increase in Contingent Resource: Our internal best
estimate of economic contingent resources, as independently audited
by McDaniel & Associates Consultants Ltd., has increased by
250%, from 39 MMBOE at December 31,
2013, to 136 MMBOE at June 1,
2014. This is largely due to a 50% increase in our
estimate of original oil in place which includes contribution from
the Bakken formation and the first bench of the Three Forks
formation across our entire acreage position and the second bench
of the Three Forks formation on a portion of our acreage.
- Increase in Drilling Inventory: As a result of the
revised contingent resource assessment, our estimate of future
drilling locations has risen by over 125%. We now estimate
approximately 330 future net drilling locations, up from 145
previously, with long horizontal wells representing 60% of these
locations. This assumes an average well density of seven wells per
drilling spacing unit. In addition, Enerplus continues to see
further upside potential through additional down spacing, higher
recovery rates and continued evolution of our well completions.
- Improved Economics: The changes in our completion
design over the past 12 months have resulted in a 50% improvement
in capital efficiencies within this play. With the increase in well
productivity, the net present value and internal rates of return of
this play have improved meaningfully.
An in-depth presentation detailing our analysis
is available on our website. In addition, we plan to hold a
webcast to provide further details on our assessment today,
June 18th at 10:00 AM MST (12:00 PM
EST).
To register for the webcast, please click
here:
http://event.on24.com/r.htm?e=795654&s=1&k=443FBC646AE541A01099C18389BE429A
Electronic copies of the presentation, along
with other public information, are available on our website at
www.enerplus.com.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
INFORMATION REGARDING RESOURCES AND OPERATIONAL
INFORMATION
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. "MBOE" and
"MMBOE" mean "thousand barrels of oil equivalent" and "million
barrels of oil equivalent", respectively.
Contingent Resource Estimates
This news release contains estimates of
"contingent resources". "Contingent resources" are not, and should
not be confused with, oil and gas reserves. "Contingent resources"
are defined in the Canadian Oil and Gas Evaluation Handbook (the
"COGE Handbook") as "those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies.
Contingencies may include factors such as economics, legal,
environmental, political and regulatory matters or a lack of
markets. It is also appropriate to classify as "contingent
resources" the estimated discovered recoverable quantities
associated with a project in the early evaluation stage. All of our
contingent resource estimates are economic using established
technologies and under current commodity price assumptions used by
our independent reserve evaluators. Enerplus expects to develop
these contingent resources in the coming years however it is too
early in their development for these resources to be classified as
reserves at this time. There is no certainty that it will be
commercially viable or that we will produce any portion of the
volumes currently classified as "contingent resources". The
"contingent resource" estimates contained herein are presented as
the "best estimate" of the quantity that will actually be
recovered, effective as of June 1,
2014. A "best estimate" of contingent resources means
that it is equally likely that the actual remaining quantities
recovered will be greater or less than the best estimate, and if
probabilistic methods are used, there should be at least a 50%
probability that the quantities actually recovered will equal or
exceed the best estimate.
For additional information regarding the
primary contingencies which currently prevent the classification of
our disclosed "contingent resources" associated with our Fort
Berthold properties as reserves and the positive and negative
factors relevant to the "contingent resource" estimates, see page
19 of our Annual Information Form dated February 21, 2014, a copy of which is available
under our SEDAR profile at www.sedar.com, and our Form 40-F, a copy
of which is available under our EDGAR profile at
www.sec.gov.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain
forward-looking information and statements ("forward-looking
information") 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", "budget",
"strategy" and similar expressions are intended to identify
forward-looking information. In particular, but without limiting
the foregoing, this news release contains forward-looking
information pertaining to the following: Enerplus' quantities of
contingent resources and original oil-in-place in the Fort Berthold
Bakken and Three Forks area; future development and drilling
locations and the types of wells to be drilled; and the future
value and rates of return on certain wells drilled in the
area.
The forward-looking information contained in
this news release reflects several material factors and
expectations and assumptions of Enerplus including, without
limitation: that Enerplus will conduct its operations and achieve
results of operations as anticipated; that Enerplus' development
plans will achieve the expected results; the general continuance of
current or, where applicable, assumed industry conditions; the
continuation of assumed tax, royalty and regulatory regimes; the
accuracy of the estimates of Enerplus' reserve, resource and
oil-in-place volumes; ability and willingness to spend the required
capital; and commodity price and cost assumptions. Enerplus
believes the material factors, expectations and assumptions
reflected in the forward-looking information are reasonable but no
assurance can be given that these factors, expectations and
assumptions will prove to be correct.
The forward-looking information included in
this news release is not a guarantee of future performance and
should not be unduly relied upon. Such information involves 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 including, without
limitation: changes in commodity prices; changes in realized prices
for Enerplus' products; changes in the demand for or supply of
Enerplus' products; unanticipated operating results, results from
development plans or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters;
changes in development plans by Enerplus or by third party
operators of Enerplus' properties; reallocation or an inability to
finance the required capital expenditures; inaccurate estimation of
Enerplus' oil and gas reserves, resources and oil-in-place volumes;
limited, unfavourable or a lack of access to capital markets;
increased costs; reliance on industry partners; and certain other
risks detailed from time to time in Enerplus' public disclosure
documents (including, without limitation, those risks identified in
our AIF and Form 40-F described above).
Ian C. Dundas
President & Chief Executive Officer
Enerplus Corporation
SOURCE Enerplus Corporation