Profile: Enerplus Corp (ERF.N)
17 Apr 2014
Enerplus Corporation (Enerplus), incorporated on August 12, 2010, is a North American crude oil and natural gas exploration and development company. Enerplus ‘s oil and natural gas property interests are located primarily in western Canada in the provinces of Alberta, British Columbia and Saskatchewan, and in the United States primarily in the states of Montana, North Dakota, Pennsylvania, West Virginia and Wyoming. On December 17, 2012, Enerplus completed an acquisition of an additional 20% working interest in the Sleeping Giant area in the Elm Coulee field in Richland County in Montana. On December 19, 2012, Enerplus completed a sale of its crude oil assets located in the Virden/Daly region of Manitoba.
Enerplus 's oil and natural gas property interests are located primarily in western Canada in the provinces of Alberta, British Columbia and Saskatchewan, and in the United States primarily in the states of Montana, North Dakota, Pennsylvania, West Virginia and Wyoming. Enerplus 's producing properties have related field production facilities and infrastructure to accommodate Enerplus 's production. During the year ended December 31, 2012, Enerplus’s production volumes from Enerplus 's properties consists of approximately 49% crude oil and natural gas liquids (NGL) and 51% natural gas, on barrels of oil equivalent basis. Enerplus 's 2012 average daily production was 82,098 barrels of oil equivalent per day, consists of 36,509 barrels per day of crude oil, 3,627 barrels per day of NGLs and 251,773 one thousand cubic feet per day of natural gas.
As at December 31, 2012, the oil and natural gas property interests held by Enerplus were estimated to contain proved plus probable gross reserves of 148,297 one thousand barrels of light and medium crude oil, 42,496 one thousand barrels of heavy crude oil, 14,412 one thousand barrels of NGLs, 590,702 one million cubic feet of natural gas and 224,500 one million cubic feet of shale gas, for a total of 341,072 one thousand barrels of oil equivalent.
Canadian Crude Oil and Natural Gas Liquids
The Enerplus 's Canadian crude oil and natural gas liquids production represent approximately 60% of its total crude oil and natural gas liquids production. The Canadian crude oil and natural gas liquids portfolio includes a variety of properties producing from formations, such as the Cardium, Viking, Ratcliffe, Lloydminster and Glauconitic. Enerplus operated over 88% of its Canadian crude oil producing assets as at December 31, 2012.
In 2012, Enerplus 's five crude oil producing properties were Medicine Hat, Brooks, Freda Lake, Pembina 5 Way and Giltedge, all of which are located in Alberta with the exception of Freda Lake, which is located in Saskatchewan. Enerplus 's Canadian crude oil and natural gas liquids production averaged 23,891 barrels of oil equivalent per day in 2012, representing approximately 29% of Enerplus 's total production for the year, and exited 2012 producing 23,712 barrels of oil equivalent per day. Enerplus had a total of 100.7 one million barrels of proved plus probable crude oil and natural gas liquids reserves as at December 31, 2012, representing approximately 30% of Enerplus 's total proved plus probable reserves. This included the conversion to reserves of 2.1 one million barrels of oil equivalent of contingent resources associated with Enerplus 's polymer project at Medicine Hat and 5.0 one million barrels of oil equivalent of contingent resources associated with its incremental oil recovery projects during the year. The Enerplus drilled 27.4 net crude oil wells in 2012, with the majority of such drilling in the Ratcliffe, Cardium and Glauconitic formations. In addition, Enerplus advanced work on its two EOR projects at Medicine Hat and Giltedge. The Enerplus added to its interest in this core area in December 2012 and holds an approximate 90% working interest in the operated leases. Enerplus 's U.S. crude oil and natural gas liquids production averaged approximately 16,245 barrels of oil equivalent per day in 2012.
Canadian Natural Gas
Enerplus ‘s Canadian natural gas production is primarily from operated and non-operated deep gas assets in Alberta and British Columbia, as well as operated shallow natural gas assets in southern Alberta and southwestern Saskatchewan. Enerplus has accumulated approximately 177,000 net acres of high working interest land in these areas, including approximately 33,000 net acres in the Montney formation, 71,000 net acres in the Stacked Mannville including the Cadomin, Falhers, Gething and Notikewin zones (54,000 of which are in the Wilrich formation) and 73,000 net acres in the Duvernay formation in the Willesden Green region of central Alberta. Enerplus has additional deep gas properties which target, such zones as the Nikannassin and Bluesky. Its shallow gas assets consists of formations of tightly packed sandstone, principally in Shackleton, in southwest Saskatchewan, and Bantry, Verger, Hanna Garden and Medicine Hat South in Alberta. Enerplus 's Canadian natural gas production averaged 198,356 thousand cubic feet per day in 2012 (exiting 2012 at 181,070 one thousand cubic feet per day).
U.S. Crude Oil and Natural Gas Liquids
Enerplus ‘s U.S. crude oil and natural gas liquids production is from properties located primarily in the Fort Berthold region in North Dakota and in Richland County in Montana. Enerplus has an approximate 90% average working interest in Fort Berthold. Enerplus has 69,000 net acres located primarily in Dunn and McKenzie counties in North Dakota. Production from the Fort Berthold region is from the Bakken and Three Forks formations and consists of light sweet crude oil (42 API) and some associated natural gas and natural gas liquids. Enerplus added approximately 34.2 one million barrels of oil equivalent of proved plus probable reserves in the Fort Berthold field during 2012, including converting 31.2 one million barrels of oil equivalent of year-end 2011 contingent resources to reserves for a total of 86.1 one million barrels of oil equivalent of proved plus probable reserves. Enerplus ‘s interests in Montana are located in the Sleeping Giant Bakken oil field in Richland County which produces primarily from the Bakken formation. Enerplus had 104.5 one million barrels of crude oil and natural gas liquids proved plus probable reserves in the United States as at December 31, 2012.
U.S. Natural Gas
Enerplus’s U.S. natural gas production is primarily from its Marcellus shale gas interests located in Pennsylvania and West Virginia where Enerplus owns approximately 96,000 net acres. Approximately 44,000 net acres are non-operated and are located in the northeast region of Pennsylvania. Enerplus’s operated interests as of December 31, 2012 consists approximately 52,000 net acres located in Pennsylvania, West Virginia, and Maryland.
Enerplus ‘s U.S. natural gas production averaged 53.4 one million cubic feet per day in 2012, representing approximately 21% of Enerplus’s total natural gas production, with exit production of approximately 79.6 one million cubic feet per day. The majority of the production was from the Marcellus region from non-operated leases in Bradford, Lycoming, Sullivan and Susquehanna counties in Pennsylvania. Enerplus ‘s U.S. natural gas proved plus probable reserves were 296 billion cubic feet as at December 31, 2012.
Enerplus participated in the drilling of a total of approximately 12 net wells (approximately 11 non-operated and one operated) during 2012. In 2012, a total of approximately 14 net wells were brought on stream and approximately 13 of these wells were brought on stream by our non-operated partners. Enerplus has 27.1 net producing wells (330 gross wells) in the Marcellus, and 14.4 net wells (200 gross wells) waiting on completions or tie-in. Production from the Marcellus averaged 40.7 one million cubic feet per day in 2012.
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