CALGARY, July 31 /CNW/ - Enerplus Resources Fund ("Enerplus") is pleased
to announce the closing of the sale of our 15% working interest in the Joslyn
oil sands lease ("Joslyn") to Occidental Petroleum. The net proceeds of the
sale were approximately $500 million after adjustments and transaction costs.
The proceeds will initially reduce bank debt, further improving our debt to
cash flow ratio however we expect to redeploy the funds toward accretive
acquisitions and development opportunities in the future.
RBC Capital Markets acted as the exclusive financial advisor to Enerplus
on the Joslyn sale process.
Enerplus is a high-yielding equity investment in the oil and natural gas
business. We are one of Canada's oldest and largest independent oil and gas
producers established in 1986. We have built a balanced and diversified
portfolio of producing properties across western Canada and the United States
with a focus on large resource plays that offer predictable production and
repeatable, low-risk development opportunities in conventional oil and gas
production as well as in Canada's oil sands. Enerplus creates value through
development drilling, optimization and acquisitions that enhance the
sustainability of our business over the long-term. Through our discipline of
paying a significant portion of our cash flow to investors each month, we
believe we offer an attractive investment in the oil and gas industry.
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