KIRBY

Reported that development plans continued throughout the quarter with a winter delineation program, consisting of 55 core holes and 3 water source/disposal wells on the lease. Updated resources estimates for the lease is expected once a full evaluation have been conducted as a results of this program.

Enerplus Resources Fund (TSX:ERF.UN) is reviewing "strategic options" for its 15 per cent interest in the Joslyn oilsands project in northeastern Alberta, reports the Canadian Press. The Calgary-based fund said Tuesday it intends to focus on its wholly owned Kirby steam-assisted gravity drainage project. If it does decide to sell its Joslyn holdings, proceeds would be used to pay down bank debt. "A strategic review of Enerplus' portfolio of oil sands and conventional projects has resulted in the decision to consider options to rebalance the portfolio" Enerplus said in a release. "While Enerplus believes that both Joslyn and Kirby provide attractive long-term potential, the operated nature of the Kirby project provides enhanced control over the timing and nature of our capital spending profile."

We completed the acquisition of a 90% working interest in the Kirby Oil Sands Partnership located in the heart of the Athabasca oil sands fairway. On June 22, Enerplus acquired the remaining 10% working interest in Kirby for $20.3 million and as a result, now owns a 100% working interest in this operated steam assisted gravity drainage project. In aggregate, our Kirby acquisitions represent a total contingent resource estimate of 244 million barrels. Our development plans for Kirby include a 10,000 bbl/day SAGD project with first production expected in 2011 and potential expansion to a total of 30,000 to 40,000 bbls/day of bitumen production. Our plans for this year include a winter core hole drilling program to further delineate the lease. In addition, preparatory engineering, stakeholder consultation and other activities are planned that will advance our regulatory application which we expect to file in 2008.