More than 124,000 acres of land sold to affiliate of private investment giant TPG Capital
CALGARY—Encana Corp. is selling a massive parcel of natural gas land in Wyoming for US$1.8-billion.
The Calgary-based company said its Encana Oil & Gas (USA) Inc. subsidiary has agreed to the sale of more than 124,000 acres of land in western Wyoming to an affiliate of private investment giant TPG Capital.
“This transaction is consistent with our strategy,” Encana president and CEO Doug Suttles said in a release.
“We are unlocking value from a mature, high-quality asset and allowing our teams to focus on our five core growth areas and continue with execution of our new strategy.”
As part of the sale, TPG will take control of roughly 24,000 active acres of land known as the Jonah field.
Encana said there are more than 1,500 active wells on the site.
“The Jonah field is a world-class, low-risk resource with long reserve life and future drilling opportunities that will be a strong platform to continue to grow a portfolio of cash flow-producing assets,” said Tom Hart, chief executive of the new oil and gas division formed by TPG.
The sale also includes more than 100,000 acres of undeveloped land adjacent to the Jonah field known as the Normally Pressured Lance (NPL) area.
TPG plans to retain the Encana employees working at the Jonah field site.
The sale is expected to close in the second quarter of 2014, subject to closing conditions.