Enerplus Resources Fund has entered into an agreement to acquire a 90% interest in the Kirby Oil Sands Partnership ("Kirby"), a privately held partnership operating in the Athabasca oil sands fairway of Alberta, for total consideration of $182.5 million, consisting of $127.8 million in cash and the issuance of 1,104,945 trust units at a deemed price of $49.55. As part of the acquisition, Enerplus will become the managing partner and the operator of the project.

This transaction represents a strategic acquisition of additional long-term oil sands assets with steam assisted gravity drainage ("SAGD") development potential that Enerplus believes will add significant long-term value for our unitholders. Oil sands assets are a key resource play for Enerplus given their lower geologic risk and the scalable development associated with these types of assets. The addition of an operated SAGD project compliments Enerplus' existing portfolio of non-operated oil sands

assets which include the mining and SAGD projects on the Joslyn lease. Enerplus has assembled an internal oil sands team with expertise in developing and operating SAGD projects.

The transaction is expected to close on or about April 10, 2007, subject to standard closing conditions. In conjunction with and in addition to the trust units to be issued pursuant to the acquisition, Enerplus has agreed to issue 4,050,000 million trust units through a bought deal financing at a price of $49.55 per trust unit for gross proceeds of $200.7 million as described in further detail later.

The proceeds of the equity financing will be used to reduce the Fund's outstanding bank debt, including indebtedness incurred in connection with the Kirby acquisition and the previously-announced acquisition of a gross overriding royalty interest in the Jonah natural gas field ("Jonah") in Wyoming for $60 million which closed on January 31, 2007, and for future capital and general corporate expenditures.