EnCana Seeks to Purchase Up to 10 Percent of Stock

EnCana Corporation (ECA: TSX, NYSE) has received approval from Toronto Stock Exchange of an amendment to the company's Normal Course Issuer Bid which was originally filed on October 22, 2004. The amendment increases the number of common shares available for purchase under Encana's Bid from 5 percent of the issued and outstanding shares on October 22, 2004 to 10 percent of the public float on October 22, 2004. There were approximately 462 million common shares outstanding on October 22, 2004. The company estimates that 10 percent of the public float on that date is equal to approximately 46.1 million common shares.

"EnCana's 2005 non-core divestitures are expected to bring in substantial funds and our capital program is expected to be funded by operating cash flow. EnCana's 20 million net acres of undeveloped North American land contain unbooked resource well beyond our proved reserves. Therefore, we believe this amendment to our Bid will provide the opportunity to further increase net asset value per share," said Gwyn Morgan, President & Chief Executive Officer. EnCana targets a net debt-to-capitalization ratio between 30 and 40.

percent. To date under its current Bid, EnCana has purchased approximately 21.2 million common shares, representing approximately 4.6 percent of the company's outstanding common shares on October 22, 2004, at an average price of US$54.56 per common share. As at January 31, 2005, EnCana had approximately 446.3 million common shares outstanding. Under the amended Bid, the company is entitled to purchase for cancellation up to an additional 24.9 million common shares through the expiry of the Bid on October 28, 2005. Purchases will be made on the open market through the facilities of TSX in accordance with its policies, and may also be made through the facilities of the New York Stock Exchange (NYSE) in accordance with its rules. The price to be paid will be the market price at the time of acquisition.
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