EnCana Awarded Exploration License Offshore West Greenland

The government of Greenland and the government of Denmark have approved the recommendation by the Joint Committee on Mineral Resources in Greenland of granting a new exploration and exploitation license for hydrocarbons to the oil companies EnCana Corporation and Nunaoil A/S. The granting of the license is based on an application from EnCana Corporation in the 2004 licensing round.

The license is signed by Minister of Minerals and Petroleum Mr. Jørgen Waever Johansen and the companies on January 20, 2005.

The license area covers 2897 square kilometers and is located approximately 250 kilometers west of Nuuk, offshore West Greenland. In terms of geology the area covers parts of the Lady Franklin Basin. 4500 km of 2D spec. seismic data has been acquired in the area. The water depth roughly ranges from approximately 750 meters in the northern part to 1750 meters in the southernmost part of the license area. No wells have previously been drilled in the license area.

The Canadian oil company EnCana Corporation will hold 87.5% of the license and will act as operator. The publicly owned oil company Nunaoil A/S will hold 12.5%.

EnCana Corporation is also the operator of the Atammik license offshore West Greenland. This license was awarded in the 2002 West Greenland Licensing Round and is situated approximately 80 kilometers north-east of the new license area.