ENERGY TRUSTS / Enerplus Resource Fund replaces 157% of Production
CALGARY, Feb. 23 /CNW/ - Enerplus Resources Fund is pleased to announce
that it has closed the last of a series of fourth quarter 1997 acquisitions
for a total consideration of $21.2 million.
During 1997, Enerplus focused its acquisition and development activities
on natural gas properties adding 24.8 billion cubic feet (''bcf'') of proven
and 4.2 bcf of probable net natural gas reserves during the year, representing
77% of net 1997 reserves additions. Enerplus replaced 157% of its 1997
production at an average cost of $4.67 per barrel of oil equivalent net of
property dispositions. The Fund has consistently fully replaced its production
in each of the last 5 years and has done so at replacement costs below $5.00
per barrel of oil equivalent (''BOE'') each year.
The Fund's largest 1997 acquisition, which closed on February 17, 1998,
consisted of various working interests and royalty interests in the Medicine
Hat area of Alberta. The property currently produces 3.9 million cubic feet
of natural gas per day net to Enerplus and has added 1.17 million BOE of
proven and 0.39 million BOE of probable reserves to the Fund. The total
consideration paid in this transaction was $8.13 million, or $5.22 per BOE,
and the remaining economic reserve life of the property is over 28 years.
Other acquisitions completed by the Fund in the fourth quarter included
natural gas producing properties in the Harmattan Elkton Unit, Wembley,
Hotchkiss, Fox Valley, Bantry and Buck Lake areas, as well as oil producing
properties in Luseland, Hayter and Medicine River. During the first nine
months of 1997, the Fund had been a net seller of assets as over $13 million
in non-core properties were disposed of at favorable prices.
As a result of 1997 acquisition and development activities, Enerplus
Resources Fund has increased its year end total proven and probable reserves
base by 4.5% over 1996 levels and has increased its year end Reserve Life
Index from 12.5 years in 1996 to 13.0 years in 1997. |
