Enerplus is an income-oriented investment in the oil and gas industry. Established in 1986, we are one of Canada's oldest and largest independent oil and gas producers. We have built a balanced and diversified portfolio of producing properties across western Canada and the United States with a focus on large oil and gas resource plays that offer growth potential as well as predictable production and repeatable development opportunities. We create value for our investors by developing early-stage resource plays as well as through development drilling, optimization, and acquisitions on later-stage assets. This portfolio mix enhances the sustainability of our business over the long term. Through our discipline of paying a portion of our cash flow to investors each month, we offer an attractive investment that provides both yield and growth.

With the implementation of the federal tax on income trusts effective January 1, 2011, Enerplus plans to convert to a dividend paying corporation in late 2010. Our tax pools will provide us with a shelter from cash taxes for a 2 - 3 year period beyond 2011 and our effective tax rate will be in the 10% - 15% range after that time. We remain committed to our income-oriented business strategy and intend to continue to balance the needs of our asset base with our investors' desire for income.

Enerplus Resources Fund trades on both the Toronto Stock Exchange (ERF.un) and the New York Stock Exchange (ERF) and is an eligible investment for all RRSPs, RESPs, RRIFs, DPSPs and IRAs. Cash distributions are paid on the 20th day of each month to all unitholders of record on the 10th day of each month. Management and the Board of Directors monitor the Fund's distribution payouts, taking into account cash flows, debt levels and capital spending plans. Payout levels are adjusted in an effort to balance the investor's desire for distributions, while maintaining a strong balance sheet, with cash distributions typically varying between 50% - 75% of total cash flow annually.