Encana Corporation has completed the announced Cutbank Ridge Partnership agreement with Mitsubishi Corporation. On February 17, 2012, Encana announced an agreement with Mitsubishi that sees the Japanese global integrated business enterprise invest approximately C$2.9 billion for a 40 percent interest in the Cutbank Ridge Partnership. The Partnership holds about 409,000 net acres of undeveloped Montney-formation natural gas lands in the Cutbank Ridge resource play in northeast British Columbia.
Upon closing of the transaction today and under the terms of the agreement, Mitsubishi acquired its partnership interest for consideration of approximately C$1.45 billion and Mitsubishi will also invest approximately C$1.45 billion, in addition to its 40 percent of the Partnership's future capital investment, for a commitment period which is expected to be about five years. Encana owns 60 percent of the Cutbank Ridge Partnership and is the managing partner and operator of the Partnership.
The Cutbank Ridge Partnership plans to create long-term shareholder value developing production capacity of its northeast British Columbia land and resources and delivering abundant natural gas to markets.
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