CALGARY, Oct. 30 /CNW/ - Enerplus Resources Fund ("Enerplus") announces
that the monthly cash distribution payable on November 20, 2008 to all
Enerplus unitholders of record on November 10, 2008 has been lowered to $0.38
per unit from the previous amount of $0.47 per unit. The ex-distribution date
for this payment is November 6, 2008.
The significant decrease in crude oil prices combined with weaker natural
gas prices has resulted in a decrease in our overall cash flows. This
commodity downturn, combined with the current uncertainty in the capital
markets, has reinforced our belief in the importance of maintaining strong
financial flexibility. To that end, we are also reducing our 2008 annual
capital development budget from $580 million to $545 million and expect to
further moderate our capital spending in 2009. This reduction in 2008 capital
will have a modest impact on our 2008 annual production and exit rate guidance
of less than 2%. We expect to announce our capital and operational guidance
for 2009 in mid-December after approval by our Board of Directors.
The reduction in development capital spending combined with the reduction
in cash distributions will help us preserve our financial flexibility and
better position us to build on our asset base as we believe opportunities for
acquisitions and mergers will increase given current market circumstances.
Enerplus currently enjoys one of the strongest balance sheets within our
sector, recently reinforced with approximately $500 million in proceeds from
the sale of our Joslyn oil sands lease which closed in July.
The CDN$0.38 per unit distribution is equivalent to approximately US$0.32
per unit if converted using a Canadian/US dollar exchange ratio of 1.20. The
U.S. dollar equivalent distribution will be based upon the actual Canadian/US
exchange rate applied on the payment date and will be net of any Canadian
withholding taxes that may apply.
Holders of Enerplus Exchangeable Limited Partnership Class B units
(formerly Focus Limited Partnership Class B units) of record on
November 10, 2008 will be eligible to receive a distribution of CDN$0.1615 per
unit on November 20, 2008 based on the exchange ratio of 0.425 of an Enerplus
trust unit for each Enerplus Exchangeable Limited Partnership Class B unit.
Further information on our financial and operating performance will be
issued on November 7, 2008 when we release our results for the third quarter
Gordon J. Kerr
President & Chief Executive Officer
Enerplus Resources Fund
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 Trust Units and potential
investors are cautioned that events or circumstances could cause results to
differ materially from those predicted.
For further information:
For further information: Investor Relations at 1-800-319-6462, or e-mail