Enerplus Resources Fund 2002 Annual Report

2002 Annual Report > Highlights

2002 SELECTED COMBINED RESULTS

for the year ended December 31					2002		2001 ¹

Operating
Average Daily Volumes
Natural gas (Mcf/day)						210,517		203,727
Crude oil (bbls/day)						23,288		24,010
NGLs (bbls/day)						4,410		4,650
Total (BOE/day) (6:1)						62,784		62,615
% natural gas						56%		54%
Established Reserve Life Index (years)						13.8		14.0

		2002		2001 ¹		2002		2001 ¹
		CDN$				US$ ²

Average Selling Price Pre-Hedging
Natural gas (per Mcf )	$	3.87	$	5.22	$	2.46	$	3.37
Crude oil (per bbl)		34.37		31.09		21.89		20.08
NGLs (per bbl)		25.68		32.09		16.36		20.72
Financial (combined basis) ($000)
Oil and gas sales before hedging	$	630,167	$	713,933	$	401,353	$	461,058
Proceeds (cost) of hedging		(8,717)		47,789		(5,552)		30,862
Royalties, net of ARTC		131,837		158,760		83,967		102,527
Operating costs		134,387		138,218		85,591		89,261
Netback		355,226		464,744		226,243		300,132
General and administrative		16,039		14,940		10,215		9,649
Management fees		21,576		12,066		13,742		7,792
Interest expense, net of interest and other income		17,728		19,287		11,291		12,456
Capital taxes		5,483		5,248		3,492		3,389
Restoration and abandonment cash costs		4,548		3,261		2,897		2,106
Funds flow from operations		289,852		409,942		184,606		264,740
Cash withheld for debt reduction		46,344		56,100		29,516		36,229
Debt/funds flow ratio		1.2x		1.0x		1.2x		1.0x

(1) The 2001 operating and financial information reflects the combined results of Enerplus and EnerMark as if the Merger had been effective January 1, 2001. Combined information provides an historical perspective of the capabilities of the combined entity. This information is also relevant as both Enerplus Resources Fund and EnerMark Income Fund have been managed by the same management group since inception. This presentation does not conform to Canadian Generally Accepted Accounting Principles. (2) All US$ amounts shown in the table above were converted using the Canadian to U.S. dollar exchange rate of $0.6369 (2001- $0.6458).

2002 HIGHLIGHTS

Enerplus Unitholders realized a total return of 26.5% in 2002.
Cash distributions paid to Unitholders totaled $3.32 per unit with an additional $0.62 per unit retained for debt repayment.
The Fund increased its established crude oil and natural gas reserves by 6% over 2001 levels, with over 14.9 MMBOE of established reserves added through our successful development program.
300 net wells were drilled with a success rate of 99% through the Fund's development program.
Enerplus successfully completed over $218 million of acquisitions, acquiring reserves at an attractive cost of $8.22 per BOE.
Successfully completed the inaugural cross-border equity financing raising over $200 million to fund acquisitions and development activities.
Enerplus diversified its debt portfolio through the issuance of US$175 million senior, 12-year amortizing unsecured notes with the proceeds reducing the Fund's bank indebtedness.

2002 CASH DISTRIBUTION PER UNIT

Production Month	Payment Month	Distribution CDN$		Exchange Rate		Distribution US$

January	March	$	0.20	$	0.6325	$	0.13
February	April		0.20		0.6353		0.13
March	May		0.28		0.6487		0.18
April	June		0.28		0.6518		0.18
May	July		0.28		0.6422		0.18
June	August		0.28		0.6350		0.18
July	September		0.28		0.6352		0.18
August	October		0.30		0.6369		0.19
September	November		0.30		0.6307		0.19
October	December		0.30		0.6428		0.19
November	January, 2003		0.30		0.6504		0.19
December	February, 2003		0.32		0.6630		0.21

Total		$	3.32			$	2.13

10 YEAR SIMPLE RETURN

Represents a 10 year simple return of 32.9% per annum

10 YEAR COMPOUND RETURN