CALGARY, May 20 /CNW-PRN/ - We are pleased to report the results for the three months ended March 31, 1999. The total cash distribution paid to Unitholders for the period was 11 cents per Unit. This was comprised of regular monthly cash distribution payments of 3 cents per Unit paid on the 20th days of March, April and May respectively and a supplemental adjustment of 2 cents per Unit paid on May 20th. Daily production averaged 20,994 barrels of oil equivalent (``BOE'') per day during the first quarter of 1999, slightly higher than the 1999 targeted production rate of 20,870 BOE per day. Crude oil and NGLs production averaged 13,515 bbls/day and natural gas production averaged 74.8 MMcf/day during this period. The Fund's 1999 capital development program was formulated to focus primarily on developing EnerMark's natural gas properties during the early part of the year. During the first quarter, the majority of our development activities were carried out at the natural gas properties of Bantry, Cherhill and Valhalla North. The Fund also began work on the Medicine Hat property acquired late in 1998. A twelve well natural gas infill development drilling program was successfully completed in the first quarter of 1999 at Bantry, Alberta. The program resulted in incremental production of approximately 1.5 MMcf/day gross, 650 Mcf/day net to the Fund. This shallow gas property will ultimately be developed with a spacing of eight wells per section to provide for the optimum recovery of the proven natural gas reserves. Development wells will continue to be drilled in order to keep existing facilities full. Facility utilization during 1999 will average 85% with this additional operated production and the processing of third party gas production. This increased utilization and the fees generated from processing the third party gas will result in significantly improved operating results for Bantry during 1999. EnerMark was successful in placing on stream two additional natural gas projects at the Cherhill/Alexis operated property. Incremental production to date is approximately 2 MMcf/day gross, 0.8 MMcf/day net. An additional 2 MMcf/day gross from this area will be placed on stream in the latter part of the second quarter. At the Valhalla North operated property, EnerMark successfully tied in and placed on stream a well during the first quarter. This natural gas well is currently producing 2.0 MMcf/day gross, 1.2 MMcf/day net and EnerMark is currently working to bring additional gas on stream from this area in the fourth quarter. EnerMark, in conjunction with industry partners, is actively pursuing the implementation of a waterflood project at the Medicine Hat property acquired in the fourth quarter of 1998. The property currently produces approximately 1,050 BOE/day and would see a significant increase in production volumes from the project. Two areas have been selected by the participants and applications will be submitted to the AEUB during the second quarter. The Fund anticipates that these waterflood projects will be initiated in the fourth quarter of 1999. EnerMark received an average selling price of $15.63 Cdn. for its crude oil production during the quarter, down from $15.86 Cdn. for the same period in 1998. Although Canadian oil prices hit record lows, supply and demand factors affecting heavy oil saw EnerMark receive better than anticipated netbacks on the Fund's heavy oil production. The average selling price for natural gas liquids for the quarter was $10.26 Cdn., down 39% from the same period in 1998 and the average selling price of the Fund's natural gas was $1.91 Cdn. per Mcf, up 10% from $1.74 per Mcf in 1998. The 10% increase in natural gas prices for the first quarter of 1999, together with lower operating costs and royalties, partially offset the decrease in oil and NGL prices and the production decline, compared to the first quarter of 1998. Cash available for distribution in the first quarter of 1999 was $12.9 million lower than for the same period in 1998 as distributions in 1998 included the benefits of rationalization activities which consisted of $4.0 million of proceeds realized on the sale of seismic data and $6.1 million of proceeds realized on asset dispositions. During the quarter the Fund successfully completed a Rights Offering resulting in the issuance of 9,533,602 trust units. The net proceeds of $22.6 million were initially applied to reduce bank indebtedness and will ultimately be used to fund the 1999 capital expenditures program which may include the acquisition of additional oil and natural gas property interests. A complete copy of the first quarter interim report is available on our website at www.enerplus.com Eric P. Tremblay Vice-President, Corporate Development SOURCE EnerMark Income Fund -0- 5/20/99 /CONTACT: Investor Relations at 1-800-319-6462 or email: investorrelations(at)enerplus.com/ (EIF.UN.) CO: EnerMark Income Fund ST: Alberta IN: OIL SU: ERN -30-  