Enerplus (ERF) Reports $575M Marcellus Nat Gas Asset Sale
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Enerplus Corporation (NYSE: ERF) reports that it has entered into an agreement to sell a portion of its Marcellus natural gas interests in Pennsylvania, Maryland and West Virginia for estimated proceeds of $575 million, including closing adjustments which take into account production and capital spending from the effective date.
From the release: "The sold interests include approximately 91,000 net acres, primarily non-operated, in southwest and central Pennsylvania, Garrett County in Maryland and northern West Virginia, with an independent contingent resource assessment of 1.6 Tcfe of natural gas as of December 31, 2010. Proved plus probable reserves associated with these leases at December 31, 2010 were 24.5 Bcfe and current production is approximately 5.4 MMcfe/day. They anticipate closing the transaction by the end of the second quarter, subject to customary closing conditions.
Proceeds from the transaction will more than eliminate their current bank debt. The assets being sold had a forecast exit production of approximately 20 MMcfe/day. They will be reviewing our capital spending and production guidance for 2011 as a result of the transaction and will provide an update at a later time."
From the release: "The sold interests include approximately 91,000 net acres, primarily non-operated, in southwest and central Pennsylvania, Garrett County in Maryland and northern West Virginia, with an independent contingent resource assessment of 1.6 Tcfe of natural gas as of December 31, 2010. Proved plus probable reserves associated with these leases at December 31, 2010 were 24.5 Bcfe and current production is approximately 5.4 MMcfe/day. They anticipate closing the transaction by the end of the second quarter, subject to customary closing conditions.
Proceeds from the transaction will more than eliminate their current bank debt. The assets being sold had a forecast exit production of approximately 20 MMcfe/day. They will be reviewing our capital spending and production guidance for 2011 as a result of the transaction and will provide an update at a later time."
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