Enerplus Resources Fund

AECO	A reference to the physical storage and trading hub on the TransCanada Alberta Transmission System (NOVA) which is the delivery point for the various benchmark Alberta index prices.
AOCI	Accumulated other comprehensive income.
Bitumen	A highly viscous oil which is too thick to flow in its native state and which cannot be produced without altering its viscosity. The density of bitumen is generally less than 10 degrees API.
BOE	Barrels of oil equivalent converting 6 Mcf of natural gas to one barrel of oil equivalent and one barrel of natural gas liquids to one barrel of oil equivalent. The factor used to convert natural gas and natural gas liquids to oil equivalent is not based on either energy content or prices but is a commonly used industry benchmark. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Bucketwheel	A mining machine that uses toothed buckets mounted on the rim of a revolving wheel to scoop up oil sands and deposit the sand on conveyers to the extraction plant.
CO₂	Carbon dioxide, a colorless, non-toxic odourless gas composed of one carbon atom and two oxygen atoms.
Coke	The solid black hydrocarbon remaining after volatile hydrocarbons have been removed from bitumen.
Coker	The equipment used to crack bitumen into its fractions and when coke is removed to begin converting bitumen to upgraded crude oil.
CONRAD	The Canadian Oil Sands Network for Research and Development is a research partnership between industry, government, and organizations.
Conversion	Converting of bitumen into synthetic crude; upgrading.
Cracking	Breaking down large, heavy, complex hydrocarbon molecules into simpler, lighter molecules.
Dragline	A machine used in mining oil sands that drops a large, toothed bucket on a cable from the end of the boom into the oil sands. The bucket is dragged through the deposit, scooping up the oil sands.
Established Reserves	Proved plus half probable reserves applicable to years 2002 and prior.
Extraction	Bitumen is separated from sand, water, and other impurities.
F&D Costs	Finding and development costs. Calculated as total capital expenditures, exclusive of acquisitions or divestments, and including changes in future development capital, divided by the applicable reserve additions (proved and/or proved plus probable). It is a measure of the effectiveness of a company's capital program.
FD&A Costs	Finding, development and acquisition costs. Calculated as total capital expenditures and net acquisitions, including changes in future development capital, divided by reserve additions (proved and/or proved plus probable). It is a measure of a company's ability to add reserves in a cost effective manner.
FDC	Future development capital is defined as though costs which reflect the independent evaluators best estimate of what it will cost to bring the proved undeveloped and probable reserves on production in the future. Changes to this figure occur annually as a result of development activities, acquisition and disposition activities, and capital cost estimate revisions.
Fractionation	Processing with heat to separate hydrocarbons into their components.
Hydrocarbons	An organic chemical compound containing only hydrogen and carbon atom. These compounds form the basis of all petroleum products. Hydrocarbons can be liquid, solid, or gaseous.
Injection Well	A well used in situ method of bitumen recovery through which steam is injected to create heat and pressure necessary to force the oil to produce bitumen.
In situ	Latin for "in place."
NGLs	Natural gas liquids - hydrocarbon components that can be recovered from natural gas as liquids, including, but not limited to, ethane, propane, butanes, pentanes plus, condensate and small quantities of non-hydrocarbons.
Nonconventional crude oil	Heavy crude oil that cannot be recovered by conventional methods from a well at a commercial rate.
Oil, heavy	Oil with a density between 10 and 22.3 degrees API, or where a royalty regime exists specific to heavy oil, it is defined based upon that royalty regime.
Oil, light & medium	Oil that has a density of 22.3 degrees API or higher.
Oil sands	An unconsolidated mixture of sands, clays, water and bitumen.
Original Oil in Place	"OOIP" - the total oil and gas estimated to have originally existed in the earth's crust in naturally occurring accumulations (also defined as "original resources" in the COGE Handbook). OOIP includes both discovered and undiscovered resources, and there is no certainty that any portion of the undiscovered resources will be discovered and, if discovered, that any volumes will be economically viable or technically feasible to recover or produce. OOIP also includes volumes that have already been produced from such accumulations. Investors should not unduly rely upon estimates of OOIP in terms of assessing the Fund's reserves or recoverable resources. All estimated of OOIP contained in this Annual Report are based upon management's internal estimates.
Operating Income	Calculated as revenues from oil and gas sales less cash hedging costs, transportation costs, royalties and operating costs.
Overburden	Layers of sand, gravel, and shale that overlie oil sands and must be removed before the oil sands can be mined.
Production, gross	Our working interest (operated and non-operated) share of production before the deduction of any royalty interest production. Unless otherwise stated, all production volumes utilized in any discussions or calculations are gross production volumes.
Production per Debt-Adjusted Unit	Production per unit is measured in respect of the average production for the year, and the weighted average number of trust units outstanding during the year. The measurements are then debt-adjusted by assuming additional trust units are issued at quarter-end unit prices to replace long-term debt outstanding at each quarter-end. The average number of trust units created over the four quarters is then added to the weighted average number of trust units to obtain the debt-adjusted number of trust units for the year.
Reclamation	Reconstruction of developed land to a stable, biologically productive state. Reclaimed land is returned to the Province of Alberta at the end of an operation's life.
Recycle Ratio	Calculated as operating income per BOE divided by FD&A costs per BOE. It is an indication of the value creation of each dollar invested.
Reserve Life Index, Proved	Calculated as proved reserves at year-end divided by the following year's estimated proved production volumes as determined by the independent reserve engineering report for 2003 and forward, and management's estimate for all prior years.
Reserve Life Index, Proved plus Probable	Calculated as proved plus probable reserves at year-end (established reserves for years 2002 and prior) divided by the following year's estimated proved plus probable production volumes as determined by the independent reserve engineering report for 2003 and forward, and management's estimate for all prior years.
Reserves, Company Interest	Our working interest (operated and non-operated) share of reserves before the deduction of any royalty interest reserves, but inclusive of any royalty interest reserves owned by Enerplus. Unless otherwise stated, reserve volumes utilized in any discussions or calculations are company interest reserves. “Company interest” is not a term defined in National Instrument 51-101 adopted by the Canadian Securities regulatory authorities and does not have a standardized meaning under NI 51-101 and therefore disclosure of our company interest reserves may not be comparable to disclosure of reserves by other issuers.
Reserves, Gross	Our working interest (operated and non-operated) share of reserves before the deduction of any royalty interest reserves, but exclusive of royalty interest reserves owned by Enerplus.
Reserves, Net	Our working interest (operated and non-operated) share of reserves after the deduction of royalty interest reserves, but inclusive of any royalty interest reserves owned by Enerplus.
Reserves per Debt-Adjusted Unit	Reserves per trust unit are measured in respect of year-end proved plus probable reserves and the number of trust units outstanding at year-end. To eliminate the temporary timing effects of financing decisions, we have debt-adjusted these measurements by assuming we issue additional trust units at year-end prices to replace year-end long-term debt.
Reserves, Probable	Additional reserves, calculated in accordance with NI 51-101, that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Reserves, Proved	Reserves that can be estimated with a high degree of certainty to be recoverable in accordance with NI 51-101. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
Reserves, Proved Developed Non-Producing	Reserves that have either not been on production or have previously been on production, but are shut-in, and the date of resumption of production is unknown.
Reserves, Proved Developed Producing	Reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
Reserves, Proved Undeveloped	Reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production.
SAGD	Steam assisted gravity drainage, an in-situ production process used to recover bitumen from oil sands.
Total Return	Calculated using the change in the trust unit price from the start of the period (including any capital appreciation or depreciation) and the total cash distributions paid during the period divided by the starting unit price.
Upgrading	By increasing the hydrogen-to-carbon ratio, heavy bitumen is converted into a lighter crude oil. Results are achieved through the removal of carbon (coking) or the addition of hydrogen (hydro processing).
Viscosity	The property that defines a fluids ability to flow.
Waterflooding	A secondary recovery method that injects water into an oil reservoir to force additional oil out.

Last updated: November 19, 2008