Annual & Special Meeting of Shareholders The Game Plan May 11, 2012
Corporate Strategy Own a portfolio of oil and gas resource plays in North America which includes: early stage assets that offer scope and scale as well as future option value producing assets with development opportunity Improve…
Dividends/Distributions - a Key Component of Shareholder Return 91.89/share paid since Paid over 6 billion in inception* cumulative dividends* 7,000 5.65 5.61 5.26 5.04 5.04 4.89 6,000 4.52 4.47 4.29 4.20 5,000 3.97…
Delivering Organic Production Growth Oil and liquids production 90,000 growing to 50% of total in 2012 80,000 oil production growth of 22% 70,000 natural gas production flat 60,000 Production growth BOE/day 50,000…
175% Organic Reserve Replacement in 2011 2P reserves increased by 5% 350 306 MMBOE 322 MMBOE Replaced 300% of our oil 300 production, growing 2P oil 43% reserves by 14% 250 47% NPV of reserves increased by MMBOE 200 10%…
Opportunity Rich Portfolio Over 200 drilling locations identified on our oil assets Cardium/other Montney new oil plays 33,000 net Significant additional 30,000 net acres acres Waterfloods upside through increased 14 properties…
Preserving Financial Flexibility We currently have a strong balance sheet but low gas prices are creating funding challenges (1.6x debt to funds flow at March 31, 2012) Actions taken to date include: February 8, 2012 equity issue -…
Implementing Stock Dividend Program (SDP) Benefits: All shareholders are now eligible to participate Shareholders can elect to receive cash dividends or Enerplus shares 5% discount to current market price and no fees or commissions…
2012 Capital Spending Program Delivers 10% Growth 2012E 2012 Capital Spending Breakdown ( millions) Tight Oil - 300 million at Fort Berthold 350 Waterfloods 150 Marcellus - 150 million non-operated/40 million operated 190 Deep…
Our Operational Focus in 2012 Execution at Fort Berthold Reduce cycle times on new wells Reduce downtime Test downspacing Continue to advance on our waterflood projects Advance EOR pilots at Giltedge & Med Hat Expected exit…
First Quarter Results Meeting Expectations Production averaged 79,200 BOE/day (+3% from Q4 2011) 47% oil and liquids, up from 44% in 2011 Invested 317 million in development capital drilling 25 net wells with 14 net wells brought…
Fort Berthold Leads the Charge in Oil Growth Current Operated and Non-Operated Locations Key Facts Net Acreage (acres) 74,000 (115 sections) 2011 P+P Reserves 55.4 MMBOE 2011 Best Estimate 49 MMBOE Contingent Resources 2011 Q4…
Fort Berthold Bakken Economics Bakken Long Laterals 9,500 ft. 20 - 24 frac stages, 11 MM/well Type Curve 30 Day IP 1,240 bbls/day EUR: 940 MBOE Oil 800 Mbbls Gas 470 MMcf NGLs 75 Mbbls IRR 90% Net Present Value (10%)* 17…
Fort Berthold Cost Mitigation & Field Optimization Improved drilling cycle times Best rig now averaging 30 days for long drill well versus 37 day average Completion design Testing different completion techniques Optimize stages,…
Canadian Waterflood Assets Key Facts OOIP 1.6 billion barrels (net) P+P Reserves (YE 2011) 90 million barrels net (26% recovery) Recovery to date 21% Best Est. Contingent 56.3 million barrels Resources Average Oil Quality 30 API…
Defining the IOR/EOR Opportunity in Canada Contingent 2011 Resource OOIP YE 2P Total (MMBbl) 2011 Net (net) Reserves Recovered Incremental Operating Asset (MMBbl) (MMBOE) (MMBbl) IOR EOR Total Recoverable Income Medicine Hat, AB 217…
Marcellus: Retaining Leases for Future Value Capture 45,000 net non-operated acres with 20% avg. working interest 110,000 net acres with 450 Major non-op partners: future drilling locations to EXCO (22% WI) support future reserve and…
2012 Non-Operated Plans Focused on Lease Retention 150 million capital budget for 2012 Rig count has dropped while maintaining the minimum needed for lease obligations 19 net new drills planned in 2012, 18 on-streams 50% of 2012…
Defining the Deep Gas Opportunity Approximately 170,000 net acres of Montney Potential high working interest land 33,000 net acres of undeveloped land throughout the region Includes 100% working interest in approximately 150,000…
Stacked Mannville Key Facts Key properties Pine Creek to Hanlan Net Acreage (acres) 67,000 total (42,000 undeveloped) Future HZ Drilling 100 - 200 Locations Expected EUR/Well 4.0 - 6.0 Bcfe Acquiring and utilizing 3D seismic…
Montney Cameron/Julienne Creek Key Facts Key Properties Cameron/Julienne Creek Progress/Petronas Net Acreage 33,000 acres (+50 sections) North Montney JV Estimated OGIP 150 Bcf/section (Lily) Future Hz Drilling 350 - 400…
Duvernay Shale Willesden Green Key Facts Sinopec Daylight Key Properties Willesden Green, AB Net Acreage 72,000 acres (110 sections) Est. OGIP 65 Bcf/section Sirius Est. Density 4 wells/section Antelope Expected 3.5 Bcf COP…
Outlook Good mix of early stage, high growth, and mature oil and gas properties Abundance of growth opportunities in our portfolio today not reliant on acquisitions We had a strong year in 2011 with respect to organic reserve…
Hedging 2012 Crude Oil 2013 Crude Oil 38% 42% 62% 58% Hedged Spot Hedged Spot 62% of net oil production hedged 42% of net oil production hedged at US96.22/bbl at US103.00/bbl Physical fixed price contracts in No natural…
Bakken Well Results Continue to Outperform Bakken Long Well Performance Bakken Short Well Performance 300 1,400 180 700 PLACEHOLDER ONLY: Cumulative Production (bbls) Cumulative Production (bbls) 1 well 160 Daily…
North Dakota Takeaway Capacity Rail and pipeline commitments in place for 8,500 bbls/day in 2012 and 14,000 bbls/day in 2013 2,000 to 3,000 bbls/day directly exposed to LLS pricing through Feb 2014 29
Significant Low Cost Resource Capture in the Marcellus Millions Significant resource capture Initial Investment 440 through acquisitions and Additional Acquisitions 160 delineation drilling Capex (net of income) 310 Partial sale…
Well Performance Continues to Exceed Expectations Non-Operated N.E. PA Well Performance 3000 Average EURs have Top 5 Wells increased from 3.2 3.4 2500 Bcf/well to 6.6 Bcf/ well Average Actual Production Cumulative Production…
Marcellus Lease Tenure Non-Operated (47,000 net acres in PA) Operated primarily by Chief, Exco and Chesapeake Anticipate 30% - 35% of leasehold to be held by production by end of 2012 Approximately 22,000 net acres expire in 2013…
Wilrich Type Curve Economics 4.0 Bcf Well 6.0 Bcf Well Type curves are based on offset data NPV NPV and are supported by our well results AECO IRR Payout 10% IRR Payout 10% (/Mcf) % (Years) (MM) % (Years) (MM) Positive drilling…
Why the Duvernay Shale at Willesden Green Duvernay has analogous rock characteristics to the Eagleford Prolific over-pressured Devonian source rock Within the gas condensate window, based on: Offsetting well control and reported…
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