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:

• 26% of proved plus probable reserves
• 24% of daily production, approximately 67% operated by Enerplus
• 26% of 2008 capital development budget
• Shackleton acquisition (Focus acquisition Feb. 2008) doubled drilling inventory with considerable unbooked reserve upside
• Over $640 million of future development potential currently identified with over 3,000 drilling locations
• Year-to-date capital spending of $101 million, 394 net wells drilled
• Focus on completing the Shackleton drilling and completions program
  *as of September 30, 2008

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

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