Enerplus Announces Sale of Remaining Canadian Assets

CALGARY, Alta., November 2, 2022 /CNW/ – Enerplus Corporation (“Enerplus” or the “Company”) (TSX: ERF) (NYSE: ERF) announced today that it has entered into a definitive agreement to sell substantially all of its remaining Canadian assets located at alberta and Saskatchewan (the “Assets”) to Surge Energy Inc. (“Surge”) for a total consideration of 245 million Canadian dollars ($180 million), before closing adjustments, with an effective date of May 1, 2022. The consideration includes 210 million Canadian dollars in cash and 35 million Canadian dollars into common stock of Surge.

The assets include production of approximately 3,000 boe per day (99% crude oil) on a net after royalty basis (approximately 4,000 boe per day before royalty).

The transaction is expected to close within December 2022subject to customary closing conditions.

TPH & Co. and Scotiabank acted as financial advisors to the Company in connection with the transaction.

About Enerplus

Enerplus is an independent North American oil and gas exploration and production company focused on creating long-term value for its shareholders through a disciplined, return-based capital allocation strategy and a commitment to safe and responsible operations. For more information, visit the Company’s website at enerplus.com.

Follow @EnerplusCorp on Twitter at https://twitter.com/EnerplusCorp.

Currency and Accounting Principles

All amounts in this press release are expressed in US dollars, unless otherwise indicated. All financial information contained in this press release has been prepared and presented in accordance with US GAAP.

Barrels of oil equivalent

This press release contains references to “BOE” (barrels of oil equivalent). Enerplus has adopted the standard of six thousand cubic feet of gas for one barrel of oil (6 Mcf: 1 barrel) when converting natural gas to boe. The BOE can be misleading, especially if used in isolation. The above conversion ratios are based on an energy equivalence conversion method primarily applicable at the burner tip and do not represent a value equivalence at the wellhead. Since the value ratio based on the current price of oil to natural gas is significantly different from the energy equivalent of 6:1, using a conversion on a 6:1 basis can be misleading.

NOTICE REGARDING THE INFORMATION CONTAINED IN THIS PRESS RELEASE

This press release contains certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable securities laws. The use of any of the words “expect”, “believe”, “estimate”, “will”, “plan”, “strategy” and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this press release contains forward-looking information regarding the following: proposed disposition of assets, including the terms of the transaction, the estimated consideration and terms thereof, and the completion schedule.

The forward-looking information contained in this press release reflects several important factors and Enerplus’ expectations and assumptions, including, without limitation: that the transactions will be completed substantially on the terms and within the time frames described in this press release hurry ; that we will conduct our operations and achieve operating results as expected; estimated commodity prices; and the general continuation of current or, as the case may be, presumed industry conditions.

The forward-looking information included in this press release is not a guarantee of future performance and should not be relied upon unduly. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: the inability to complete the sale of the assets in accordance with the terms hereof or not at all and/or failure to realize the anticipated benefits of such sale; unexpected operating results; commodity price fluctuations; and certain other risks detailed from time to time in Enerplus’ public disclosure documents (including, without limitation, the risks identified in its annual information form for the year ended December 31, 2021Management’s Discussion and Analysis (“MD&A”) and Form 40-F at December 31, 2021 as it may be updated from time to time by current reports on Form 6-K, all of which are available, as applicable, on the SEDAR website at www.sedar.comon the SEC website at http://www.sec.gov and on the Enerplus website).

SOURCEEnerplus Corporation

For further information: Investor Contacts, Drew Mair, 403-298-1707; Krista Norlin, 403-298-4304