Enerplus To Sell Non-Strategic Interests In Williston Basin For $115 Mln - Quick Facts

(RTTNews) - Enerplus Corp. (ERF, ERF.TO), a Canadian oil and gas exploration and production company, announced Monday that it has entered into a definitive agreement to sell certain non-strategic interests in the Williston Basin for total consideration of $115 million.

In addition to the total consideration, Enerplus will receive up to $5 million in contingent payments if the WTI oil price averages over $65 per barrel in 2022 and over $60 per barrel in 2023. The effective date of the transaction is July 1, 2021.

The sale is expected to close at the end of October 2021, subject to customary closing conditions.

Enerplus said the sale consists of its interests in the developed Sleeping Giant field in Montana and the southernmost portion of Enerplus' North Dakota position in the Russian Creek area. The Interests do not include any future drilling locations in Enerplus' identified Williston Basin drilling inventory.

Enerplus' working interest production from the Interests averaged approximately 3,000 BOE per day in the second quarter of 2021 and includes approximately 244 net wells. Estimated 2022 net operating income associated with the Interests is around $22 million based on a $60 WTI oil price.

Ian Dundas, President and CEO, said, "We now estimate that we will achieve our $400 million debt reduction target by the end of the first quarter of 2022, based on the current commodity price environment. While debt reduction remains our priority, we believe our shares are trading in an attractive price range, and as a result, we plan to direct approximately 10% of the sale proceeds to incremental share repurchases."