The Sleeping Giant oil project is located within the Williston Basin in Richland County in northeast Montana and produces light, sweet crude oil, associated gas, and negligible water from the Middle Bakken formation.

As our single largest crude oil producing property, the Sleeping Giant project represents approximately 11% of our production and 8% of our proved plus probable reserves and is predominantly operated by Enerplus. During 2007 we invested $106 million to drill 39 gross wells (23.7 net) with average production of 11,132 BOE/day.

We are currently working on our third well per section drilling program with overall results that remain attractive despite lower than anticipated initial production rates. Refracs continued to provide both incremental oil production of 50 BOE/day and reserve recovery of approximately 77,000 BOE.

Since our acquisition of this property in 2005, Enerplus has replaced approximately 9 MMBOE of produced reserves and has increased reserves by almost 4 MMBOE to bring proved plus probably reserves for this play type to approximately 42 MMBOE. In 2008, we plan to spend approximately $50 million to further enhance this resource play through our capital spending program with focused optimization efforts that include automating pump controls, managing fluid levels, and improving downtime. As well, we will be working to complete our third well per section drilling program, continue our refrac program, determine the viability of a fourth well per section along the lease lines, and further expand areas outside the core Bakken play.

Inside Enerplus: Waking the Sleeping Giant Calgary Herald article, May 13, 2008

In the first quarter of 2008, our development activity in the Bakken resource play kept two drilling rigs active for most of the quarter drilling four additional third wells per section. We temporarily slowed our refrac program to concentrate on higher return optimization activities and expect to resume the refrac program in June. Through our current activities in the U.S., we expect to maintain production volumes in the range of 11,000 BOE/day throughout 2008 with targeted spending of $55 to $65 million. We continue to advance our develpment plans beyond 2008 and have identified opportunities which will help to maintain production in the coming years. We also continue to pursue growth opportunities in the U.S. which are outside of our existing area.