Enerplus Resources Fund will open a U.S. headquarters facility in the state of Colorado early next year, making it the latest Canadian energy company to invest in the Denver metro.
The establishment of the Denver office will support the ongoing operation of Enerplus’ assets in the United States and facilitate future growth, said Jo-Anne Caza, vice president of investor relations for Enerplus.
The Calgary, Alberta-based company plans to initially employ 25 people in the Denver office, with the prospect of growing as it acquires more U.S. properties, Caza said.
Enerplus is one of the biggest companies in energy income funds, a Canadian investment vehicle. The funds invest in oil and gas properties and distribute most of their income to shareholders, unlike conventional energy companies, which pay relatively small dividends and invest most profits in the business.
Earlier this year, Enerplus completed its first acquisition of assets outside of Canada when it purchased Dallas-based Lyco Energy Corp. Through the acquisition, the company acquired about 8,700 BOE (barrels of oil equivalent) per day of mainly crude oil production in Montana, as well as a significant undeveloped land base in North Dakota.
The company considered Dallas for the headquarters facility. However, given the distance from the actual production acquired and also the proximity of Denver to Calgary, the company felt that the Mile High City was a better fit for its needs, Caza said.
“We also consider Denver to be the main center for oil and gas activities in the Rocky Mountains, so this was a good fit with our business needs with regard to hiring personnel and expanding on our business,” she said.
The state of Colorado is a location that many companies in the oil and gas industry have chosen to make their headquarters, with 236 energy-related companies in downtown Denver alone.
Enerplus’ decision to move to Denver was also a result of the 2005 Colorado-Alberta Energy Partnering Mission, which was coordinated by the Consulate General of Canada and local and state organizations from Colorado.
Last April, a delegation traveled to Calgary from Denver to foster partnerships between Colorado and Alberta energy companies and research institutions in order to improve production and development of untapped energy resources in the Rocky Mountain region.
Denver has been a focal point of Canadian investment during the past two years. Calgary-based energy firms EnCana and Petro-Canada spent $3.2 billion last year acquiring Denver-based oil and gas companies.
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