The Energy of Enerplus Canadian Royalty Trusts Friend or Foe? IPAA Presentation, June 16, 2005

2 Dramatic Sector Growth and Performance Source: Bloomberg and public documents

3 Significant Force in Industry Source: Scotia Capital / First Energy Capital Corp. / Benjamin Financial Note: Excludes Canadian Oil Sands Trust from Trust category and includes Penn West as a Trust in 2004

4 Typical Structure Unit Holders Beneficial interest in the trust Assets or Royalties Purchase unitsCash distributions Trust or Income Fund Management Company Majority of Companies are owned by Trust Fees Services Operating Co 3rd Party Credit Facility Credit facility Debt service Purchase assets or royalties Proceeds from sale of gas and oil Trust owns inter-company note and receives interest and principal payments or Trust owns royalty and receives royalty payments Trust lends Operating Co. money or Trust purchases royalty from Operating Co.

5 Structural Comparison

6 Trusts Activity Focused On Value Creation Source: FirstEnergy Capital Corp., CAPP, and Benjamin Financial Note: Includes Penn West as a trust in 2004

7 Royalty Trust Drivers Perfect Storm for Royalty Trusts Present Robust energy prices Falling or modest interest rates Yield oriented investors Attractive relative performance Attractive Business Model Tax efficiency Management discipline / corporate governance Risk mitigation Shift towards technical excellence Shift towards self sustainability

8 Impact on the Market Changed the landscape of Canadian E&P through conversions Driving increase in M&A metrics,especially longer-life, lower risk assets Increasing competition for labor, services, land, and capital Supporting US E&P MLP / LLC movement Driving asset sales, junior exits, and consideration of self-trusts by large independents and majors

9 Lofty Valuations Source: Benjamin Financial Solutions

10 Trusts Driving M & A Source: CIBC World Markets and Sayer Securities Limited.

11 Macrotrends Support Continued Growth Recent approval for index inclusion High commodity prices driving need for tax efficiency Maturing oil and gas sector Focus on value creation including international acquisitions Desire for risk mitigation and corporate discipline Investor demographics Dividend tax treatment in the U.S.A.

12 …Although not without issues Canadian market is getting crowded Increasing interest rates and spreads Sustainability of underlying reserves / unit Vagaries of US retail market Ability to attract / retain top quartile management and technical staff

13 Trust Model in the US Drivers Favorable tax treatment Possible valuation arbitrage Positive Canadian experience Strong demand for yield Questions Appropriate structure given commodity price risk Interest rate risk Trading liquidity and market pricing Memories from prior efforts

14 Future Expectations Canadian trusts will be aggressive acquisitors Strong equity markets, robust valuations, and forward markets support aggressive bids Ideal acquisition mature property with some upside and low tax basis Trust market will continue to grow in and outside of Canada Continued product supply given valuation prospects More conversions likely including trust spinouts from large E&P Consolidations expected, due to lack of qualified management and desire for size International acquisitions will increase including US despite tax leakage Trusts will continue to move towards technical value creation including a portion of exploration US structures will evolve based on Canadian experience US E&P MLP or LLC imminent Hi-split MLP’s structures vulnerable to competition over time

15 Industry Implications Trusts will be a strong competitor in Canada and will enter new markets US MLP / LLC could change the US M&A market over time Consider partnering on acquisitions with a strong Canadian Trust, especially in limited tax pool situations or on deals with a mix of exploration and exploitation upside which could be split Include trusts on all divestment offerings including infrastructure deals Develop long-term relationships - trusts are here to stay

16 A Final Suggestion.... Oldest and largest conventional trust (~75,500 BOE/day) NYSE and TSE listed (>US$4B EV) Superior equity value Strong technical staff Creative deal structures Tax advantaged Contact : Garry Tanner, Sr. Vice President and COO (403) Ian Dundas, Sr. Vice President, Business Development (403)

17 Enerplus Performance (1) Source: Bloomberg; Assumes the reinvestment of distributions and/or dividends; Based on the weekly closing price of Enerplus trust units on the Toronto Stock Exchange. S&P 500 was converted to CDN$ using the closing exchange rate at week end