Encana Sells Gordondale Oil And Gas Assets To Birchcliff For C$625M


CALGARY, June 21 (Reuters) - Encana Corp said on Tuesday it reached an agreement to sell its Gordondale oil and gas assets in northwestern Alberta to Birchcliff Energy Ltd for C$625 million ($487.98 million).

The sale, which includes some 54,200 net acres of land and associated infrastructure, is set to close in the summer of 2016 with an effective date of Jan. 1, 2016, pending regulatory approvals.

Encana's sale of the Gordondale assets, which produced an average of 25,200 barrels of oil equivalent per day in the first quarter, comprises 65 percent natural gas and 35 percent liquids. Estimated proved reserves are some 50 million barrels of oil equivalent.

Encana said it is reducing midstream and downstream commitments by more than C$100 million on an undiscounted basis. No drilling or completions capital was planned for the area in 2016, it said.

Following the sale, Encana's Montney play will comprise of over 9,000 potential drilling locations with two-thirds of those wells located in the condensate-rich part of the play, it added.

"We are tightening our portfolio and sharpening our focus in the Montney where we expect to grow liquids production to 50,000 barrels per day by the end of 2018," Doug Suttles, the company's president and chief executive, said in a statement.

RBC Capital Markets advised Encana on the transaction, it said.

(Reporting by Catherine Ngai; Editing by Tom Brown)

Copyright 2017 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.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Midland: Account Rep, Bus Dev
Expertise: Business Development|Marketing|Sales
Location: Midland, TX
Key Financial Consultant Job
Expertise: Accounting|Financial Analyst|Legal
Location: Minneapolis, MN
Asset Disposal Specialist
Expertise: Asset Management|Energy / Commodity Trading
Location: Crosby, TX
search for more jobs

Brent Crude Oil : $52.72/BBL 3.31%
Light Crude Oil : $48.51/BBL 3.01%
Natural Gas : $2.89/MMBtu 1.36%
Updated in last 24 hours