(RTTNews) - Thursday, Enerplus Resources Fund (ERF: News , ERF_U.TO), an owner of crude oil and natural gas producing properties, reported a decline in earnings for the third quarter as sales declined from the previous year. The company also reaffirmed its production outlook for 2009.

Net income for the quarter slid to C$38.18 million or C$0.23 per share from C$465.8 million or C$2.82 per share in the corresponding period last year.

Cash flow from operating activities declined to C$207.2 million from C$383.6 million a year earlier. Oil and gas sales, net of oil and gas transportation costs, but before the effects of commodity derivative instruments, declined to C$35.23 million from C$73.6 million in the corresponding period last year.

Daily production averaged 90,111 BOE/day during the quarter. Average daily production of natural gas declined to 323.884 million cubic feet per day or Mcf/day from 341,803 Mcf/day a year earlier. Average daily production of crude oil declined to 32,218 barrels a day or bbls/day from 34,119 bbls/day in the year ago quarter. Natural gas liquids average daily production declined to 3,912 bbls/day from 4,557 bbls/day in the year-ago quarter.

Average selling price of natural gas slid to C$2.95 Mcf from C$8.25 Mcf a year earlier. Crude oil average selling price fell to C$64.94 per barrel or bbl from C$110.63 per bbl a year earlier. Natural gas liquids average selling price fell to C$32.59 per bbl from C$81.20 per bbl in the year-ago quarter.
Operating costs per barrel were C$10.07/BOE or barrels of oil equivalent. Hedging program realized cash gains of C$40.6 million in the quarter, helping to offset weak natural gas prices. Cash flow from operating activities before changes in non-cash working capital declined to C$20.90 million from C$38.90 million in the corresponding period last year. Cash distributions per unit declined to C$0.55 from C$1.36 in the year-ago quarter.

For the nine-month period net income plunged to C$86.4 million or C$0.52 per share from C$699.4 million or C$4.40 per share a year earlier. Oil and gas sales declined to C$35.36 million from C$72.44 million a year earlier.

The company said it continues to expect 2009 annual production volumes to average 91,000 BOE/day. Operating costs are expected to decline to C$10.20/BOE from C$10.65/BOE projected earlier.

ERF closed Thursday's regular trading session at $22.77.

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by RTT Staff Writer

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