Enterra Energy announced its financial and operating results for the quarter ended March 31, 2010.
Don Klapko, Chief Executive Officer commented, "We are excited about our unitholder vote held on May 12, 2010 which established our conversion from an energy trust to Equal Energy, a growth oriented exploration and production corporation. Over the next month, we will complete the process of the conversion and look forward to delivering results on the opportunities that we have created over the last year."
In the first quarter of 2010, Enterra focused on drilling and expanding prospect inventory building on the positive momentum from 2009. Key achievements during the first quarter of the year included:
- We acquired additional land assets in the Cardium trend and Viking play in Alberta, along with key lands in Oklahoma. These acquisitions have further increased our prospect inventory. We have excellent growth potential with oil opportunities in the Cardium, Circus Viola, Dina PPP, Viking and Pekisko formations along with our liquids-rich gas play in the Hunton formation in Oklahoma.
- We continue to develop our potential oil resource Circus Viola play in Oklahoma with 2 (0.8 net) wells drilled during Q1 2010. The first well has now been completed with a multi-stage fracture stimulation and is currently being tested.
- We have drilled 1 (1.0 net) well on our Cardium lands in Alberta, with the second well expected to spud in Q2. The multi-stage fracture stimulation is scheduled for May.
- In March 2010, we closed the acquisition of reserves and an interest in the Caroline Swan Hills Gas Unit # 1 and gas processing facilities. The production associated with this acquisition improves the economic efficiency of our operations in the nearby Ricinus area. We expect an overall increase in our production of 500 boe per day from our Ricinus property coming back online.
- Enterra has contracted one rig, which will begin drilling wells on our liquids-rich gas play in Oklahoma beginning in July. We plan to drill up to six wells in this project before the end of 2010.
- We intend to drill oil wells on our Dina PPP, Viking and Pekisko lands starting in Q2 and carrying on through the balance of 2010.
- Finally, on May 12, 2010, the unitholders of Enterra voted on the reorganization of the Trust into a growth-oriented corporation that will be named "Equal Energy." This vote was approved by 92% of the unitholders and all regulatory approvals for Enterra's conversion to a corporation are expected to be in place by late May 2010.