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
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:
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
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
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
Ian C. Dundas
President & Chief Executive Officer
SOURCE: Enerplus Corporation
For further information:
please contact Investor Relations at 1-800-319-6462 or email firstname.lastname@example.org.