Enerplus reports first quarter profits rise to $121.4 million from $107.9 million

By: THE CANADIAN PRESS

CALGARY - Enerplus Resources Fund (TSX:ERF.UN), a Calgary-based oil and gas trust, reports its first quarter profits rose to $121.4 million from $107.9 million on higher output and impact of Focus Energy Trust acquisition.

The company also said it has decided to sell its stake in the Joslyn oilsands project in Northern Alberta, a development controlled and operated by French oil and gas giaant Total.

The will allow Enerplus to focus on its wholly owned Kirby oilsands development and other potential projects, Enerplus said in its earnings release.

In the financial report, Enerplus said it earned 82 cents a unit for the three months ended March 31, compared with 88 cents a unit for the previous year's period.

Three-month revenues rose 33 per cent to $503.7 million from $380 million.

On Feb. 13, Enerplus closed the single largest acquisition it its history - the $1.7 billion acquisition of Focus Energy Trust. The acquisition changed the company's output to just over 60 per cent natural gas and 40 per cent crude oil and natural gas liquids in its portfolio.

In the first quarter, production averaged 89,150 oil equivalent barrels a day, up from 86,028 the previous year.

In March, Enerplus said it would review strategic options for its 15 per cent stake in Joslyn, suggesting it would try to sell the stake, which some analysts have valued at about $500 million.

"A strategic review of our portfolio of oil sands and conventional projects has resulted in the decision to consider options to rebalance our portfolio," the company said Friday.

"While we believe that both Joslyn and Kirby provide attractive long-term potential, the operated nature of the Kirby project provides enhanced control over the timing and nature of our capital spending profile. In addition, there are more SAGD opportunities within Canada for future growth and SAGD is better suited to our technical competencies and business model."