DBRS Confirms Enerplus Resources Fund at STA-5 (high)

Dominion Bond Rating Service (“DBRS”) has confirmed the stability rating of Enerplus Resources Fund (“Enerplus” or the “Fund”) at STA-5 (high) following the Fund’s proposed Cdn$509.4 million acquisition of Lyco Energy Corporation, adding 7,000 gross barrels of oil equivalent per day (boe/d) (9% of March 31, 2005, production) of predominantly light gravity oil in North Dakota and Montana, with closing expected in August 2005.

The transaction is viewed as positive overall, and the above confirmation reflects the following considerations:

(1) The acquisition represents a strategic move for the Fund into the U.S., establishes a new core area near its existing operations in western Canada, and will serve as a platform to pursue other growth opportunities. This new area is characterized by light oil with substantially lower operating costs and, as such, provides higher netbacks relative to the Fund’s existing operations. In addition, the acquired properties provide development potential with 120,000 net acres of undeveloped land.

(2) The acquisition is 31% debt-financed consisting of the issuance of 7,600,000 subscription receipts for gross proceeds of Cdn$351.5 million and drawing Cdn$157 million from existing credit facilities. Pro forma debt-to-capitalization rises to approximately 24% (22% prior to acquisition), but remains at reasonable levels given the underlying business risks. The Fund has granted to the underwriters an option to purchase an additional 1,650,000 subscription receipts for the same price. An additional option to increase the number of purchased units by 15% at the same price and commission has also been granted. In the event that both options are exercised, gross proceeds of Cdn$492 million are expected to be realized, making this transaction mainly equity financed (resulting in a pro forma 19% debt-to-capitalization).

(3) Based on the 7,600,000 subscription receipts, the transaction is expected to be slightly accretive to per unit cash flow and reserves. On a pro forma basis, proved reserve life index remains at approximately 10.6 years, among the highest of its peers.

(4) Acquisition metrics of Cdn$72,771 per flowing boe and Cdn$22.66 per boe of proved reserves (including Cdn$24 million undeveloped land), while high relative to recent transactions, reflect the unique operating characteristics of the properties, the higher quality production, and the strategic value to the Fund.