CALGARY,
AB, Nov. 2, 2022 /CNW/ - Enerplus
Corporation ("Enerplus" or the "Company") (TSX: ERF) (NYSE: ERF)
today announced that it has entered into a definitive agreement to
sell substantially all of its remaining Canadian assets located in
Alberta and Saskatchewan (the "Assets") to Surge Energy
Inc. ("Surge") for total consideration of CDN$245 million (US$180
million), prior to closing adjustments, with an effective
date of May 1, 2022. The
consideration comprises CDN$210
million in cash and CDN$35
million in common shares in Surge.
The Assets include production of approximately 3,000 BOE per day
(99% crude oil) on a net after deduction of royalties basis
(approximately 4,000 BOE per day before deduction of
royalties).
The transaction is expected to close in December 2022, subject to customary closing
conditions.
TPH & Co. and Scotiabank acted as financial advisors to
the Company with respect to the transaction.
About Enerplus
Enerplus is an independent North American oil and gas
exploration and production company focused on creating long-term
value for its shareholders through a disciplined, returns-based
capital allocation strategy and a commitment to safe, responsible
operations. For more information, visit the Company's website at
www.enerplus.com.
Follow @EnerplusCorp on Twitter at
https://twitter.com/EnerplusCorp.
Currency and Accounting
Principles
All amounts in this news release are stated in U.S. dollars
unless otherwise specified. All financial information in this news
release has been prepared and presented in accordance with U.S.
GAAP.
Barrels of Oil
Equivalent
This news release 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. BOE 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.
NOTICE REGARDING INFORMATION
CONTAINED IN THIS NEWS RELEASE
This news release contains certain forward-looking
information and forward-looking statements ("forward-looking
information") within the meaning of applicable securities laws. The
use of any of the words "expect", "believe", "estimate", "will",
"plan", "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: proposed disposition of
the Assets, including the terms of the transaction, estimated
consideration and terms thereof, and timing of completion.
The forward-looking information contained in this news
release reflects several material factors and expectations and
assumptions of Enerplus including, without limitation: that the
transactions will be completed substantially on the terms and
within the timeline described in this press release; that we will
conduct our operations and achieve results of operations as
anticipated; estimated commodity prices; and the general
continuance of current or, where applicable, assumed industry
conditions.
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: failure
to complete the sale of the Assets in accordance with the terms
thereof or at all and/or failure to realize the anticipated
benefits of such sale; unanticipated operating results;
fluctuations in commodity prices; and certain other risks detailed
from time to time in Enerplus' public disclosure documents
(including, without limitation, those risks identified in its
annual information form for the year ended December 31, 2021, management's discussion and
analysis ("MD&A"), and Form 40-F at December 31, 2021 as it may be updated from time
to time by current reports on Form 6-K, all of which are available,
as applicable, on SEDAR website at www.sedar.com, on the SEC's
website at http://www.sec.gov and on Enerplus' website).
SOURCE Enerplus Corporation