2009-08-10-2008-01-01-2008-04-01

Transaction Type
Announce Date
Post Date
Close Date
Estimated Price
1.7BB
Description

Acquired co., gaining 85.4 MMBOE/2P.

Enerplus Resources Fund, Calgary, (NYSE, Toronto: ERF) and Focus Energy Trust, Calgary, (Toronto: FET) have completed their merger in a deal valued at approximately C$1.7 billion. Enerplus paid 0.425 unit per Focus unit, a deal offer representing C$17.38 per Focus unit, a premium of 3%. Enerplus unit-holders own approximately 79% of the combined trust, which operates as Enerplus. Enerplus assumed about C$300 million of Focus debt. The combined trust has 363.6 million barrels of oil equivalent of proved reserves, 165.1 million barrels probable and 528.7 million barrels proved plus probable. Production is more than 100,000 barrels equivalent per day. Total undeveloped acres are 1.1 million. The combined market cap is C$7.6 billion. Enerplus has assets in British Columbia, Alberta, Saskatchewan, Manitoba and Montana. Reserves as of year-end 2006 were 300 million barrels of oil equivalent proved, 143.5 million probable, with total proved plus probable of 443.3 million. Assets include 741,000 net undeveloped acres. Approximately 60% of Enerplus' daily production comes from shallow gas, deep tight gas, waterfloods and Bakken oil in Montana. Also, through a 100% working interest in a steam-assisted gravity-drainage project and a 15% working interest in the Joslyn project, Enerplus has the potential to add more than 60,000 barrels of daily oil production from Albertan oil sands during the next 10 years. As of Nov. 30, Focus has reserves of 63.8 million barrels of oil equivalent proved, 21.6 million barrels probable with 85.4 million barrels total proved plus probable. Assets include the operated Shackleton property in the Milk River shallow gas play in Saskatchewan producing 69 million cubic feet equivalent per day. It features more than 1,500 future drilling locations. The Tommy Lakes property is tight gas producing from the Halfway Sandstone formation 130 kilometers south of Fort Nelson, B.C., making approximately 30 million cubic feet per day. It is an operated winter-access property with more than 50 expected future drilling locations. Additional Focus assets include six minor properties producing approximately 3,400 barrels of oil equivalent per day in Red Earth, Pouce Coupe/Progress, Mantario/Marengo, Hatton/Medicine Hat, Sylvan Lake and the Cabin/Kotcho areas. Enerplus has properties that overlap approximately 50% of these areas. Enerplus increased the size of its syndicated bank credit facility by C$400 million to C$1.4 billion with a revolving three-year term. RBC Capital Markets is financial advisor to Enerplus and BMO Capital Markets is strategic advisor. Scotia Waterous Inc. is financial advisor to Focus.