In management's opinion, the accompanying consolidated financial statements of Enerplus Resources Fund (the "Fund") have been prepared within reasonable limits of materiality and in accordance with Canadian generally accepted accounting principles.   Since a precise determination of many assets and liabilities is dependent on future events, the preparation of financial statements necessarily involves the use of estimates and approximations.    These have been made using careful judgement and with all information available up to March 10, 2004.   Management is responsible for all information in the annual report and for the consistency, therewith, of all other financial and operating data presented in this report.

To meet its responsibility for reliable and accurate financial statements, management has established and monitors systems of internal control which are designed to provide reasonable assurance that financial information is relevant, reliable and accurate, and that assets are safeguarded and transactions are executed in accordance with management's authorization.

The consolidated financial statements have been examined by Deloitte & Touche LLP, independent Chartered Accountants.   Their responsibility is to express a professional opinion on the fair presentation of the consolidated financial statements in accordance with Canadian generally accepted accounting principles.   The Auditors' Report outlines the scope of their examination and sets forth their opinion.  

The Audit Committee, consisting exclusively of independent directors, has reviewed these statements with management and the external auditors and has recommended their approval to the Board of Directors. The Board of Directors has approved the consolidated financial statements of the Fund.

"signed"	"signed"
Gordon J. Kerr	Robert J. Waters
President and	Senior Vice President and
Chief Executive Officer	Chief Financial Officer
Calgary, Alberta	Calgary, Alberta
March 10, 2004	March 10, 2004

AUDITORS' REPORT

To the Unitholders of Enerplus Resources Fund:

We have audited the consolidated balance sheets of Enerplus Resources Fund (the "Fund") as at December 31, 2003 and 2002 and the consolidated statements of income, accumulated income, accumulated cash distributions and cash flows for the years then ended. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Fund as at December 31, 2003 and 2002 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles.

"signed"

Calgary, Alberta
DELOITTE & TOUCHE LLP Chartered Accountants
March 5, 2004

Consolidated Balance Sheets

As at December 31 ($ thousands)	2003	2002
ASSETS
Current assets
Cash	$80,416	$718
Accounts receivable	71,304	92,986
Other current	13,412	1,975
	165,132	95,679
Property, plant and equipment (Note 2)	2,448,365	2,374,145
Deferred charges (Note 3)	2,115	1,807
	$2,615,612	$2,471,631
LIABILITIES
Current liabilities
Accounts payable	$100,449	$79,189
Distributions payable to unitholders	33,022	24,870
Payable to related party (Note 6)	-	19,038
	133,471	123,097
Long-term debt (Note 3)	338,117	361,729
Future income taxes (Note 5)	268,515	340,269
Accumulated site restoration	60,335	59,038
Deferred credits	1,942	4,266
Payable to related party (Note 6)	-	1,400
	668,909	766,702
EQUITY
Unitholders' capital (Note 4)	2,511,375	2,156,999
Accumulated income	690,046	440,446
Accumulated cash distributions	(1,388,189)	(1,015,613)
	1,813,232	1,581,832
	$2,615,612	$2,471,631

Signed on behalf of the Board of Directors:

"signed"	"signed"
Douglas R. Martin	Robert L. Normand
Director	Director

Consolidated Statements of Income

For the year ended December 31 ($ thousands except per trust unit amounts)	2003	2002
REVENUES
Oil and gas sales	$935,819	$630,167
Hedging costs	(45,808)	(8,717)
Royalties	(190,395)	(131,837)
	699,616	489,613
Interest and other income	913	559
	700,529	490,172
EXPENSES
Operating	170,476	134,387
General and administrative (Note 4)	25,369	16,039
Management fees (Note 6)	3,042	21,576
Management internalization (Note 6)	55,100	-
Interest on long-term debt (Note 3)	19,708	18,100
Foreign exchange (gain)/loss (Note 9)	(924)	187
Depletion, depreciation and amortization	244,890	213,908
	517,661	404,197
Income before taxes	182,868	85,975
Capital taxes	6,223	5,483
Future income tax recovery (Note 5)	(72,955)	(35,384)
NET INCOME	$249,600	$115,876
Net income per trust unit
Basic	$2.90	$1.61
Diluted	$2.89	$1.61
Weighted average number of trust units outstanding (thousands)
Basic	86,202	71,946
Diluted	86,501	72,084

Consolidated Statements of Accumulated Income

For the year ended December 31 ($ thousands)	2003	2002
Accumulated income, beginning of year	$440,446	$324,570
Net income	249,600	115,876
Accumulated income, end of year	$690,046	$440,446

Consolidated Statements of Cash Flows

Consolidated Statment of Accumulated Cash Distributions

For the year ended December 31 ($ thousands)	2003	2002
Accumulated cash distributions, beginning of year	$1,015,613	$777,992
Cash distributions	372,576 2,621	237,621
Accumulated cash distributions, end of year	$1,388,189	$1,015,613