The two firms said that the merger has created a large oil and gas producer that possesses high-quality, long-life asset base with an extensive portfolio of resource play opportunities in shallow natural gas, Bakken light oil, crude oil waterfloods, deep tight gas and the oil sands.
Enerplus will enjoy a diversified and balanced portfolio of oil and gas assets producing approximately 100,000 barrels of oil equivalent per day with a proved plus probable reserve life index of approximately 14 years.
Production levels and capital spending activities reportedly continue to be in line with the firms’ previous estimates. Additional benefits are expected to be derived from increased liquidity and a strong balance sheet that will facilitate further expansion of operations.
Under the arrangement, Focus unitholders received 0.425 of an Enerplus trust unit for each Focus trust unit exchanged. In conjunction with the closing of the acquisition, Enerplus has increased the size of its syndicated bank credit facility by $400 million to $1.4 billion.
