Enerplus Resources and Focus Energy have entered into an agreement that provides for the strategic combination of Enerplus and Focus. These two well-respected trusts have combined to create a better, stronger, technically focused organization with exciting prospects for the future.

Under the terms of the agreement, Focus unitholders will receive 0.425 of an Enerplus trust unit for each Focus trust unit. Focus unitholders will receive a value of $17.38 per Focus unit based on the closing price of Enerplus trust units on the Toronto Stock Exchange as at November 30, 2007 which represents a premium of approximately 3 percent compared to the 10 day weighted average price of Focus and Enerplus trust units on the TSX.

On completion of the combination, Enerplus unitholders will own approximately 79 percent and Focus unitholders will own approximately 21 percent of the combined trust. This transaction is expected to be tax-deferred for both Canadian and U.S. resident Focus unitholders although they may elect to participate in the transaction on a taxable basis for Canadian federal income tax purposes. The combined trust will carry on business as Enerplus and continue to be listed on both the TSX and the New York Stock Exchange.

Gordon Kerr, President & Chief Executive Officer of Enerplus, states, "It is rare that we get an opportunity to combine with such a highly respected, technically driven organization. Focus is contributing premier properties with high netbacks, low operating costs and strong capital efficiencies in resource plays which are complementary to our existing portfolio. We expect a smooth integration because of the concentrated nature of Focus' properties, as well as the considerable property overlap and similar operating philosophies of the two organizations. It may appear counter-intuitive to increase natural gas exposure at a time when North American natural gas prices are currently depressed however these assets have attractive economics at the current prices and cost structures and we see signs of potential cost savings. We also remain bullish on the longer term outlook for natural gas prices."

Derek Evans, President & Chief Executive Officer of Focus commented, "This transaction provides our unitholders with increased exposure to oil, a greater diversity of resource plays, less asset concentration risk, a larger portfolio of more diverse organic drilling opportunities, increased tax pools and oil sands exposure, in a larger well capitalized entity with significant liquidity."

Tags: EnerGulf Resources Inc., Focus Energy