Encana To Sell Some Texas Gas Assets For $530M


April 29 (Reuters) - Encana Corp , Canada's largest natural gas producer, said it had agreed to sell about 90,000 net acres in east Texas for about $530 million to an undisclosed buyer, as part of a plan to cut its dependence on low-value natural gas.

Chief Executive Doug Suttles has been selling assets to reduce exposure to natural gas, which has become cheaper after a U.S. shale boom.

Encana, which is focusing on five shale fields in the United States and Canada with reserves high in oil and valuable natural-gas liquids, agreed in March to sell its properties in Wyoming's Jonah natural gas field to private equity firm TPG Capital for $1.8 billion.

The sale announced on Tuesday includes areas primarily in Leon and Robertson counties with average production of about 100 million cubic feet per day (MMcf/d) of natural gas and about 1,200 barrels per day (bpd) of total liquids in 2013.

Estimated proved reserves of the properties were a little over 200 billion cubic feet equivalent (Bcfe), comprising 97 percent of natural gas, at the end of last year.

The sale is expected to close in the quarter ending June.

(Reporting by Ashutosh Pandey in Bangalore; Editing by Don Sebastian)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Oilfield Sales Representative - Outside Sales (Oil and Gas)
Expertise: Business Development|Project Management|Sales
Location: Odessa, TX
EU Business Development Manager - Refining/Maintenance Services
Expertise: Business Development
Location: Houston, TX
Manager, Probabilistic Risk Analysis Job
Expertise: Business Development|Research & Development|Technical Manager
Location: Minneapolis, MN
search for more jobs

Brent Crude Oil : $49.98/BBL 1.59%
Light Crude Oil : $49.18/BBL 1.56%
Natural Gas : $2.73/MMBtu 1.44%
Updated in last 24 hours