Gulf Oil and Gas accountACCOUNT

Enerplus Divests Alberta & Saskatchewan Assets for $67.3 Million

Source: www.gulfoilandgas.com 3/9/2017, Location: North America

Enerplus Corporation has entered into definitive agreements to sell various Canadian properties located in Alberta and southwest Saskatchewan for aggregate proceeds of $67.3 million, before customary closing adjustments. Enerplus is making corresponding adjustments to its 2017 guidance to reflect the impact of these divestments.

The properties to be divested include the majority of Enerplus' shallow gas assets, as well as its Brooks waterflood property. These divestments are a part of Enerplus' portfolio optimization strategy as the Company continues to focus on its larger-scale, higher-margin assets in Canada and the United States that are expected to drive long-term profitable growth.

With these divestments, Enerplus expects to realize a $0.60 per BOE reduction in overall corporate operating expense, driving further margin improvement, and a 60% reduction in its overall well count as Enerplus continues to actively manage its abandonment and reclamation liabilities.

Key information regarding the divestments:

Current production: 7,300 BOE per day (66% Natural Gas); Operating cost: $18.00 per BOE; Net wells divested: 3,200.

These transactions are expected to close by mid-April 2017.

Scotia Waterous and RBC Capital Markets are acting as financial advisers to Enerplus.

2017 Adjusted Guidance

Enerplus is adjusting its 2017 guidance to reflect the divestments announced today. With minimal capital allocated to the divested assets, the Company's 2017 capital budget is unchanged. Production has been adjusted to reflect the approximate nine-month impact of the divested volumes on annual average production, as well as the full impact on fourth quarter production. As a result of the higher proportion of U.S. production following the divestments, the Company's average royalty and production tax rate is forecast to increase by 1% to 24%. As mentioned above, annual operating expense guidance has been reduced by $0.60 per BOE. Transportation expense is expected to increase by $0.10 per BOE due to the higher proportion of U.S. production, and G&A expense per BOE is expected to modestly increase due to the lower overall production volumes.

Acquisitions and Divestitures News in Canada >>

Australia >>  5/14/2019 - Vintage Energy has executed a binding Heads of Agreement with Firetail Energy Services for it to become a joint venture partner in the EP126 permit (o...
Mexico >>  5/13/2019 - Equinor has exercised its preferential rights to acquire an additional 22.45% interest in the Caesar Tonga oil field from Shell Offshore Inc for a tot...

Trinidad and Tobago >>  5/13/2019 - Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, is pleased to announce that it...
Indonesia >>  5/8/2019 - Sonoro Energy has announced that along with its Indonesian partner Menara Global Energi, an affiliate of a substantial Indonesian company, it has been...

Algeria >>  5/5/2019 - Total has reached a binding agreement with Occidental to acquire Anadarko’s assets in Africa (Algeria, Ghana, Mozambique, South Africa) for a consider...
Gambia >>  5/1/2019 - African Petroleum notes recent media articles stating that BP has signed an agreement with the Gambian government in relation to Block A1 in The Gambi...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Canada Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.