Enerplus Corp. (NYSE: ERF) said April 11 it will sell certain assets in Northwest Alberta for about C$95.5 million (US$74.1 million), subject to closing adjustments.
The Calgary, Alberta-based company has entered into an agreement for the sell of noncore assets, comprised of its Pouce Coupe assets, to an undisclosed buyer. The company will use proceeds to reduce its debt, including repurchasing a portion of its senior unsecured notes.
Production from the assets is expected to average about 2,300 barrels of oil equivalent per day (boe/d) in 2016 (50% natural gas, 30% nonoperated), according to the release.
Upon closing of the transaction, Enerplus's 2016 divestitures will total C$288.5 million. The sale is expected to close in the second quarter of 2016, the release said.
TD Securities Inc. is Enerplus' exclusive financial adviser for the sale.
Enerplus is maintaining its 2016 production guidance range of 90,000 to 94,000 boe/d, despite the divestment, as a result of continued strong operational performance, the release said.
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