Encana to Sell Interest in Jonah Field in Wyoming
“Rigzone” reports that Canadian producer Encana Corp is selling its interest in the Jonah Field to a TPG Capital unit for $1.8 billion. This includes more than 1,500 wells on 24,000 acres as well as over 100,000 adjacent undeveloped acres. Estimated proven reserves totalled 1,493 billion cubic feet at year end 2013.
The sale is part of a new strategy by Encana, Canada’s largest natural gas producer, to divest gas assets in order to concentrate on oil and natural gas liquids. Their goal is to increase production of these higher margin products by 30% in 2014. In order to do so they are focusing their efforts on two shale fields in Canada as well as the DJ Basin in Colorado, the San Juan Basin in the Four Corners area, and the Tuscaloosa Marine Shale in Louisiana and Mississippi.
The sale is expected to close in the second quarter. Encana’s share price on the Toronto Exchanges has risen nearly 24% this year.
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