(Reuters) - Enerplus Corp ERF.TO reported a second consecutive quarterly loss as prices of dry gas and natural gas liquids fell and the Canadian company said it could sell some of its undeveloped land.
The oil and gas producer plans to raise C$250 million to C$500 million over the next 18 months, by selling a portion of its portfolio of equity investments or a sale or joint venture of a portion of its undeveloped acreage.
Enerplus warned it may cut its capital spending and dividend if the commodity prices continue to be low or if its plan to raise funds fail. The company currently pays a monthly dividend of 18 Canadian cents a share.
It is also looking at alternatives for its operated land at Marcellus in northeast region of Pennsylvania, Montney and Duvernay in western Canada.
Enerplus expects to have “minimal” impact on its current production and reserves due to the monetization.
The company forecast 2012 production to rise by 10 percent to 83,000 barrels of oil equivalent per day.
For the first quarter, the company posted a loss of C$33.8 million, or 18 Canadian cents per share, compared with a profit of C$29.5 million, or 17 cents per share last year.
Natural gas accounted for 52 percent of the company’s total production.
U.S. natural gas prices slumped 40 percent in January-March quarter from last year.
The commodity’s prices have hit fresh lows this year and dropped to $1.90 in April, their lowest in a decade as new drilling technology in North America has created a glut.
The company, however, said it had no plans to shut-in or curtail any of its operated natural gas production but will continue to monitor both prices and activities in its non-operated natural gas properties.
Enerplus said natural gas liquids prices fell to C$56.77 a barrel from C$60.29 last year.
Reporting by Aftab Ahmed in Bangalore; Editing by Gopakumar Warrier