2005 Highlights   President's Message   Operations     Sustainability     Competitive      Advantages     Key Resources      Shallow Gas      Waterflood      Development      Bakken Oil      Oil Sands      Coalbed Methane      Other       Conventional   Acquistions and    Divestments   Reserves   Corporate      Governance   Environment,       Health and Safety   Community       Involvement   MD&A   Financial Statements   Notes   Supplemental        Information    5 Year Detailed      Statistical Review    Operational Statistics    Supplementary      Reserve Information    Historical     Performance    2005 Income Tax      Information    Abbreviations    Definitions    Directors & Officers    Corporate     Information     Return to Enerplus.com

<< previous page | Next Page >> Enerplus owns approximately 70% working interest in a producing Bakken oil field in Richland County, Montana ('Sleeping Giant') through our acquisitions of Lyco Energy Corporation ('Lyco') and Sleeping Giant LLC ('SG LLC'). The Sleeping Giant project is located within the Williston basin in northeast Montana and produces from the Middle Bakken dolomite formation at a depth of approximately 10,000 feet. Unlike typical Bakken reservoirs found in southeast Saskatchewan and surrounding areas, which tend to be comprised of shale or siltstone with associated water, the Middle Bakken formation in the Sleeping Giant project is dolomitized and contains negligible water. It is a solution gas drive reservoir that produces sweet, light oil (42 degree API) and some associated natural gas. Since early 2000, the pool has been developed through the drilling of horizontal wells coupled with hydraulic fracturing. Initial peak monthly average oil production rates on wells with 4,000 - 8,000 foot horizontal laterals has ranged between 300 - 400 bbls/day of crude oil and are expected to recover between 400 - 750 MBOE of oil and natural gas reserves over the life of each well. These wells cost approximately US$3 - US$4 million to drill, complete and tie-in. Key Facts about our Bakken Oil: Proved plus probable reserves are approximately 37 MMBOE, 1 MMBOE higher than when we purchased the assets. Our 2005 exit rate was above 10,000 BOE/day, 1,300 BOE/day higher than when we completed the purchase of the properties late in the third quarter. Superior netbacks given the 42 degree API quality of the oil and the lower operating costs of $1.80/BOE. We have currently identified 55 remaining drilling locations in the Sleeping Giant project for full development to two wells per section Offers potential for improved recovery through implementation of a water flood, infill drilling to greater than two wells per section, and/or possible implementation of a CO2 flood further in the future. We also own 120,000 net acres of prospective Bakken undeveloped land in Montana and North Dakota with expansion potential. The primary target will be the Bakken formation however some of the lands are also prospective for the Ratcliffe, Mission Canyon, Birdbear, Duperow and Red River geological formations. 2005 Activities Since the acquisitions of Lyco and SG LLC, we invested $29.1 million in the Bakken play, up from our original estimate of $27 million. We drilled 15 gross wells (9.4 net) in the Sleeping Giant project of Montana. We also commenced drilling operations in North Dakota in late 2005 with our first exploration well into our large undeveloped land base. Since acquiring the Lyco properties, we have added 2,300 BOE/day of incremental production for an attractive on-stream cost of $12,700/BOE/day. 2006 Outlook In 2006, we plan to invest $89 million in Montana and North Dakota to drill 43 gross oil wells (27 net) with the Bakken formation as the main target. The majority of these are infill wells in the Sleeping Giant project and we have secured access to the drilling rigs and services that are required to execute this program. We are also opening an office in Denver in February 2006 to support the ongoing operation of Sleeping Giant and to pursue business development opportunities in the United States.   << previous page | Next Page >>