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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Company: Andes Petroleum Company more info
- Ecuador, Andes Petroleum Likely to Sign New Production Contract (Jul 28)
- Andes JV Completes Seismic, Plans 4 New Wells (Jun 26)
- Ecuador Eyes Temporary Oil Contracts (Apr 14)