Enerplus sells assets in northwest Alberta

CALGARY, Alberta -- Enerplus Corporation has entered into a definitive agreement to sell certain non-core assets located in northwest Alberta, including its Pouce Coupe asset.

The total cash consideration for the assets is approximately C$95.5 million, subject to closing adjustments, and the transaction is expected to close in second-quarter 2016. Enerplus has used its 2016 divestment proceeds, which will total C$288.5 million upon the closing of this divestment, to reduce its outstanding debt, including repurchasing a portion of its senior unsecured notes.

At Dec. 31, 2015, the assets were estimated to have proved plus probable reserves of 9.1 MMboe (50% natural gas) with production from the assets expected to average approximately 2,300 boed in 2016 (50% natural gas, 30% non-operated). Given the higher operating costs and lower project returns relative to other areas in Enerplus' portfolio, the assets were considered non-core to the company's long-term strategy.

The divestment is expected to be accretive on both a production per debt adjusted share and funds flow per debt adjusted share basis, and have a modest impact on 2016 funds flow.

Enerplus is maintaining its 2016 production guidance range of 90,000–94,000 boed, despite this divestment, as a result of continued strong operational performance.