Attractive reserve additions from our U.S. properties, oil sands and conventional Canadian operations were partially offset by unexpected capital inflation and negative revisions (mainly in the probable category) in our Canadian conventional areas. Enerplus achieved overall proved plus probable finding, development and acquisition costs including future development capital of $23.19/BOE in 2006 ($20.45/BOE excluding FDC) and a three-year average FD&A cost of $14.90/BOE ($11.51/BOE excluding FDC).

Other key points in our reserve assessment include:

• Reserve life index increased to 14 years in line with our historical performance.
• We replaced 82% of our produced reserves production without the benefit of any significant acquisitions. Over the last five years, we have averaged almost 200% reserve replacement inclusive of acquisition and divestment activity.
• Our U.S. operations added 7.3 million BOE at a one-year proved plus probable F&D cost of $13.78/BOE including FDC reflecting a 20% increase in reserves at December 31, 2005 as a result of our strong operational and development performance in the U.S.
• 6.9 million BOE were added to our oil sands reserves at a one-year proved plus probable F&D cost of $10.54/BOE ($5.67/BOE excluding FDC) reflecting another successful year of core hole drilling and analysis.
• No changes were made to the allocation of reserves associated with the SAGD portion of the Joslyn lease versus the mining portion. Total and Enerplus are in discussions on a potential change to the lease development plan which could impact the reserve allocation between the mine and SAGD portions of the lease and the timing of reserve bookings.
• There are no proved or probable mining reserves included in our year-end reserve summary. The current North Mine project continues to progress and there is the potential to book probable reserves associated with this project at year-end 2007.
• Canadian conventional development added over 19 million BOE, excluding negative revisions, at a one-year proved plus probable F&D cost of $20.63/BOE ($17.17/BOE without FDC). This reflects the strong conventional drilling results we achieved in Canada which were partially offset by the negative revisions tied to existing Canadian operations.
• Proved and probable negative revisions of 7.5 MMBOE were predominantly from the "probable" reserves category which has less certainty than "proved" reserves. These revisions represent less than 2% of our total year-end reserves and were mainly due to performance and economic factors in a few of our older Canadian conventional properties.
• No changes to the after-tax calculations have been included for our Canadian assets in connection with the proposed changes on taxability for trusts in the Canadian market. Should the proposed legislation be enacted, Enerplus would provide an updated analysis which would include the effect of any enacted tax legislation.
• Acquisition and divestment activity resulted in no significant change to our reserves. Minor acquisitions were offset by the sale of a 1% working interest in our Joslyn lease.

For a full description of our reserves and the associated reserve reporting determination and methodologies, please see the reserve section.