December 14, 2009 / 12:16 PM / 9 years ago

UPDATE 1-Enerplus sees 2010 exploration spending at C$425 mln

* To spend C$260 mln in Canada, C$165 mln in U.S.

* Sees 2010 production at 86,000 BOE/d

* Says to drill 87 wells in 2010

Dec 14 (Reuters) - Canadian oil explorer Enerplus Resources Fund ERF_u.TO on Monday said it will spend about C$425 million on its exploration activities for 2010, up 35 percent from its budget for this year, citing recovering crude oil prices and economic conditions.

The Canadian investment trust said it expects to spend C$260 million on its Canadian assets and C$165 million on its U.S. operations, with 56 percent of its spending directed at oil opportunities.

It sees crude oil and natural gas liquids’ production at 37,000 barrels a day and 294 million cubic feet (MMcf) per day of natural gas for 2010, totalling about 86,000 barrels of oil equivalent (BOE) a day.

The trust earlier expected to reach production of 88,000 BOE a day by the end of this year.

“We expect our 2010 projects to provide compelling economic returns at WTI prices of $60 per barrel, AECO natural gas prices of C$4.20 per Mcf and NYMEX gas prices of $4.50/Mcf,” the company said in a statement.

The trust expects to drill a total of 87 oil wells next year and will spend about C$118 million on Bakken Tight oil assets, to drill about 42 wells.

Enerplus units have gained about 4 percent in last three months. They closed at C$23.82 Friday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Jarshad Kakkrakandy)

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