Encana delays asset sale to CPP until Q2 2016
The sale was announced in October as part of Encana's plan to divest non-core assets
CALGARY—There’s a delay of up to six months in the US$900-million sale of Encana’s DJ Basin oil and gas assets in Colorado to a group led by the Canada Pension Plan Investment Board.
The transaction was originally to close by the end of 2015 but that’s been pushed to the second quarter of 2016. The cause of the delay wasn’t included in a statement issued by Encana.
It says Crestone Peak Resources, formed by CPPIB and The Broe Group, remain committed to the purchase and has increased its deposit. Other terms including purchase price remain unchanged.
The sale was announced in October—part of Encana’s plan to divest non-core assets. It was also one of several oil and gas investments this year by the CPPIB.
Since then, the price of crude has continued to fall and a group of nearly 200 countries, including Canada and the United States, signed a pact on Dec. 12 that calls for reductions—and then elimination—of greenhouse gas emissions.