Enerplus Corporation ("Enerplus") is pleased to announce results for Marcellus acquisition and Montney disposition Subsequent to the quarter.
Consistent with our strategy to concentrate our portfolio in top tier assets in core areas, we have entered into agreements to add to our U.S. gas position in the Marcellus and to also sell our Montney interests in northeastern British Columbia. We have entered into an agreement to acquire additional working interests in 17,000 net non-operated acres within our core properties in the Marcellus with current production of approximately 42 MMcf/day of natural gas for approximately US$153 million before closing adjustments.
The acquisition increases our working interest in existing non-operated leases within the northeast region of Pennsylvania. Since entering the play in 2009, well performance from this region has surpassed our expectations and increased our confidence in the productivity and economic viability of the Marcellus. Based upon the drilling results achieved to date, we expect ultimate recoveries ("EUR") of natural gas in the best areas to range from 10 Bcf to 13.5 Bcf or higher per well. Close to half of the acquired leases are located in 10 Bcf or greater areas and virtually all of the value of the transaction has been attributed to these Tier 1 areas with approximately 44 net future drilling locations.
Approximately 60% of the total leases being acquired are currently held by production. With the majority of our existing core leasehold acreage now held by production, we have seen an improvement in drilling efficiencies to date in 2013 that has resulted in lower well costs. Based upon our expected ultimate recoveries and current well costs of under $7 million, we expect top tier full cycle finding, development and acquisition costs of less than $1.00 per Mcf with attractive recycle ratios.
Upon closing of the acquisition, Enerplus' core Marcellus acreage will total approximately 60,000 net acres. We plan to more fully outline our capital spending plans when we release our 2014 production and capital forecast in December of this year. The acquisition is expected to close at the end of November 2013 and as a result will increase our 2013 exit rate guidance from 88,000 BOE/day to 95,000 BOE/day. This increase in natural gas production in 2014 is expected to provide us with the opportunity to continue selling non-core assets and high-grading our portfolio. Our 2013 annual average production and capital spending forecast is not expected to change materially as a result of the acquisition.
We have also entered into an agreement to sell our Montney interests at Julienne Creek for $130 million. While we believe the Julienne Creek asset offers significant scope and scale, the natural gas produced in this area is predominantly dry with very little associated natural gas liquids production. Our core assets in the Williston Basin, our waterfloods, the Marcellus and the Deep Basin (Wilrich and Duvernay) provide us with a deep inventory of future drilling prospects that offer more favourable economics and will enable us to grow production, reserves and cash flow in existing areas in both the near and long-term. Enerplus has invested approximately $50 million building our position in the Montney. The sale includes 33,300 net contiguous acres (100% working interest) with no current production or reserves, representing sale metrics of approximately $3,900 per acre.
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