The Game Plan NADOA North Dakota Seminar April 11, 2012

1 Enerplus Assets

2 Detailed Williston Basin map Montana North Dakota Williston Sidney Watford City Elm Coulee Field Ft. Berthold Indian Reservation Nesson Anticline 2

3 Elm Coulee Bakken Type Log

4 Hydraulic Fracturing 4 Fracturing fluid - The fluid used during a hydraulic fracture treatment of oil, gas, or water wells. The fracturing fluid has two major functions: 1.Open and extend the fracture. 2.Transport the proppant along the fracture length. Proppant - Suspended particles in the fracturing fluid that are used to hold fractures open after a hydraulic fracturing treatment, thus producing a conductive pathway that fluids can easily flow along. Naturally occurring sand grains or artificial ceramic material are common proppants used.

5 Lateral Configuration First 17 Wells Completed as 5-1/2” Mono-Bores Focus was on limited entry Four, 3’ perf clusters placed across drilling breaks and gas shows Typical perf density was 29 holes over 3,000’ of lateral in five groups Early perforating was done with TCP guns Perfs in the toe clusters were increased slightly assuming that the frac would prefer to treat the heel due to higher treating pressures 30-35# X-linked Borate gels pumped at 45 BPM placing 390,000 # of premium 20/40 resin coated proppant ramped up to 6 ppg RA tracers were run in to better understand proppant distribution Tracers indicated some heel treatment, however, frac preference seemed to be towards the toe 9-5/8” 5-1/2”

6 Lateral Configuration /2” Continued to run 5-1/2” casing cemented from the curve to the base of the 9-5/8” surface casing Cementing was through a DV tool above an External Casing Packer 9-5/8”

7 Lateral Configuration /2” Liner 9-5/8” 7” Begin to run 7” intermediate casing cemented from the curve to the base of the 9-5/8” surface casing Cementing was through a DV tool above an External Casing Packer

8 Lateral Configuration First attempt to use a single water swell packer in open hole to create two separate isolated compartments that could be fraced independently of each other. –Mid-lateral to toe was pre-perforated and perforations were plugged with aluminum inserts that could later be knocked off with a bit prior to fracturing –A composite bridge plug was then set inside the liner at mid-point followed by jet perforating from the mid-point to the heel prior to fracturing second stage –Completion results were more encouraging

9 Sleeping Giant Progression to 2-3 water swell packers to break lateral in to 3-4 compartments (1,500-3,000’ in length) –Pre-perforating mid-point to toe –Jet perforating mid-point to heel –Using ball sealers and benzoic acid flakes (BAF) for diversion –Later used fiber gel slugs in an attempt to create fluid diversion –Frac fluid systems were similar to pre-2008 jobs

10 Current Completion Design 2012

11 Double Barrel Ball Seats Side view Front view

Ball Actuated Frac Sleeve Sleeves contain ball seats that are sequentially opened during the scheduled fracture treatments The ball serve two purposes: º Shift open the sleeve º Temporarily isolates previous stage/interval Locking device ensures the sleeve remains open © 2009 Baker Hughes Incorporated. All Rights Reserved. 12

Hydraulic Set Open-Hole Packer Used to isolate intervals to be fraced Set with differential pressure at the packer © 2009 Baker Hughes Incorporated. All Rights Reserved. 13

Swell Packer A self-energized swelling elastomeric packer that seals in open hole Built on a casing pup that matches the mechanical properties of the liner The packer element reacts with annular fluid º Water reactive element º Oil reactive element © 2009 Baker Hughes Incorporated. All Rights Reserved. 14

15 Single Frac Stage Pumping Schedule for Ft. Berthold StageFluidRateCleanProppant Description Liquid + PropVolume, galTypeConcentrationVolume Drop ball(s)10# Water Frac3510,000 Pump-inSlickwater101,00000 Pre-pad35# Linear gel3510,00000 Pad35# XL Borate (33)3512,00000 Prop Laden Fluid35# XL Borate (33352,00020/40 ceramic Spacer35# XL Borate (333512,00000 Prop Laden Fluid35# XL Borate (33352,00020/40 ceramic0.51,000 Spacer35# XL Borate (333512,00000 Prop Laden Fluid35# XL Borate (333510,00020/40 ceramic110,000 Prop Laden Fluid35# XL Borate (333512,00020/40 ceramic224,000 Prop Laden Fluid35# XL Borate (333515,16720/40 ceramic345,500 Prop Laden Fluid35# XL Borate (333511,00020/40 ceramic444,000 Total109,167125,000 Note: Will seat frac ball(s) at BPM

16 Dissolving Frac Balls

17 Frac Sleeve Demonstration at 40 BPM

18 Thank You! Any questions?