Subscribe
PLANT

Enerplus sells Manitoba oil assets for $220 million

Crude assets in Virden/Daly region produce 1,600 barrels of oil per day.


November 2, 2012
by The Canadian Press

CALGARY—Enerplus Corp. will sell all of its oil producing assets in Manitoba for about $220 million.

The Calgary-based energy company said the assets, located in the Virden/Daly region, produce about 1,600 barels of oil per day of crude.

Enerplus said the assets were considered non-core “given the limited near-term growth potential under our current capital allocation plans, along with the high recovery of oil to date and lower working interests.”

“Improving the focus, concentration and profitability of our business is critical to our future success,” said Gordon Kerr, president and CEO. “The sale of these assets will reduce our debt levels thereby improving our financial flexibility and allowing us to focus our investment in core areas that we believe have better growth potential and superior economics.”

The sale is expected to close in December. A buyer has yet to be named.

Enerplus produces oil and gas in BC, Alberta, Saskatchewan and Manitoba. In the US, it produces oil in Montana and North Dakota and natural gas from the Marcellus formation in Pennsylvania, West Virginia and Maryland.

©The Canadian Press