Shallow natural gas has been a core development area for Enerplus since the late 1990s. The shallow natural gas formations in southern Alberta and southwest Saskatchewan consist of massive, tightly packed sandstone that covers an area of over 10,000 square kilometres. These zones are typically less than 800 metres in depth and upper Cretaceous in age, with most production coming from the Milk River, Medicine Hat, and Second White Specks producing zones. Our largest shallow natural gas producing properties are Shackleton, Bantry, Hanna Garden, Verger and Medicine Hat South, all of which are located in Alberta with the exception of Shackleton, which is in southwest Saskatchewan.

We have been investing in coalbed methane ("CBM") assets since 2004. Alberta contains significant amounts of coal distributed throughout the southern Plains, Foothills, and Mountain regions. We are currently focused on the Horseshoe Canyon formation in the Trochu, Bashaw and Joffre areas in Alberta’s southern Plains region, which do not have the water handling issues often associated with CBM production, and will be looking to start a Manville program in the near future.

Key Statistics:

• 28% of proved plus probable reserves
• 25% of 2009 year to date daily production
• Shackleton (Focus acquisition Feb. 2008) doubled drilling inventory with considerable unbooked reserve upside
• Reserve Life Index of over 12.6 years
• Development capital plan - our focus will be on drilling 250 shallow gas wells in Alberta to take advantage of the Alberta Drilling Royalty Credit program throughout the balance of 2009 and into 2010. Activity will be focused at Verger, Bantry, Hanna Garden, and Princess.
  *as of September 30, 2009

For further information on all of our resource plays, click here.

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