Strong production gains from its existing leases in Alberta and Saskatchewan will pump up Calgary-based Enterra Energy Corp.’s third quarter earnings 300% over a year ago, the company said Thursday.

Enterra expects revenues to range between US$12-$14 million, with cash flow between US$6.5-$7.5 million in the quarter, or US70-75 cents a share. In 3Q02, Enterra reported revenues of US$3.2 million and cash flow of US$1.5 million, or US17 cents a share. Earnings, which will be issued on Nov. 14, are expected to range between US$1.5-$2 million, compared with US$461,000 a year ago.

“The outstanding growth that we have experienced over the last year has prompted us to change our reporting method in the United States from a U.S. domestic small business issuer to a 20-F (foreign issuer) filer,” said CFO Luc Chartrand.

In the third quarter Enterra drilled 19 wells resulting in 17 oil wells (16 net) and one natural gas well (net) for a success ratio of 94%. The company also is drilling its eleventh Sylvan Lake well. With eight of the new wells currently producing, production has increased in this field from approximately 165 boe/d to more than 1,000 boe/d, and the drilling program is expected to continue in 2004.

Currently, Enterra has more than 10 additional drilling locations. It also is constructing production facilities to handle the increased production from this field. As a result of the increased production and facilities, overall operating costs in this field are expected to be substantially reduced.

Also in the third quarter, Enterra drilled and completed three additional wells in its Clair field, where it has begun water injection. The sales pipeline in the Clair field went into operation in the latter part of the quarter. Enterra has also completed the construction of a pipeline to tie in Enterra’s Kaybob well, and it now is being tested for production rates and pumping designs.

In other news, Enterra plans to host a shareholder meeting on Nov. 24 to vote on restructuring the company. If approved, Enterra would become a royalty trust unit for Canadian shareholders and a high-yield equity fund for U.S. shareholders. Based on current commodity prices, Enterra’s monthly distributions would begin in January 2004 at about US20 cents a unit for all unitholders, based on its current 10.4 million fully diluted shares outstanding. With its restructuring the company anticipates a 2-for-1 conversion.

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