The Sleeping Giant oil project is located within the Williston Basin in Richland County in northeast Montana and produces light, sweet crude oil, associated gas, and negligible water from the Middle Bakken formation.

As our single largest crude oil producing property, the Sleeping Giant project represents approximately 11% of our production and 8% of our proved plus probable reserves and is predominantly operated by Enerplus. During 2007 we invested $106 million to drill 39 gross wells (23.7 net) with average production of 11,132 BOE/day.

We are currently working on our third well per section drilling program with overall results that remain attractive despite lower than anticipated initial production rates. Refracs continued to provide both incremental oil production of 50 BOE/day and reserve recovery of approximately 77,000 BOE.

Since our acquisition of this property in 2005, Enerplus has replaced approximately 9 MMBOE of produced reserves and has increased reserves by almost 4 MMBOE to bring proved plus probably reserves for this play type to approximately 42 MMBOE. In 2008, we plan to spend approximately $50 million to further enhance this resource play through our capital spending program with focused optimization efforts that include automating pump controls, managing fluid levels, and improving downtime. As well, we will be working to complete our third well per section drilling program, continue our refrac program, determine the viability of a fourth well per section along the lease lines, and further expand areas outside the core Bakken play.

Inside Enerplus: Waking the Sleeping Giant Calgary Herald article, May 13, 2008