EnCana Closes Sale of Ecuador Interests

EnCana Corporation has closed the previously-announced sale of all of its oil and pipeline interests in Ecuador to Andes Petroleum Company, a joint venture of Chinese petroleum companies, for approximately US$1.42 billion. The sale occurred via the transfer of shares in certain EnCana subsidiaries. The sale proceeds are approximately equivalent to the net book value of EnCana's investment in Ecuador at December 31, 2005.

Harrison Lovegrove & Co. Limited has advised EnCana on the transaction. Merrill Lynch acted as a strategic financial advisor to EnCana.

With an enterprise value of approximately US$45 billion, EnCana is one of North America's leading natural gas producers, is among the largest holders of gas and oil resource lands onshore North America and is a technical and cost leader in the in-situ recovery of oilsands bitumen. EnCana delivers predictable, reliable, profitable growth from its portfolio of long-life resource plays situated in Canada and the United States. Contained in unconventional reservoirs, resource plays are large contiguous accumulations of hydrocarbons, located in thick or areally extensive deposits, that typically have lower geological and commercial development risk, lower average decline rates and very long producing lives compared to conventional plays. The application of technology to unlock the huge resource potential of these plays typically results in continuous increases in production and reserves and decreases in costs over multiple decades of resource play life.


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