Encana to sell Colorado natural gas play for US$735M
by The Canadian Press
The Piceance assets include about 3,100 wells which produced about 240 million cubic feet per day of natural gas in the first quarter
CALGARY—Encana Corp. has a deal to sell its Piceance natural gas assets in Colorado for US$735 million cash to Caerus Oil and Gas LLC of Denver.
The Piceance assets include approximately 3,100 operated wells, which produced about 240 million cubic feet per day of natural gas in the first quarter. They also produced 2,178 barrels per day of liquids.
Encana has been focusing its efforts on four core areas in Texas and western Canada, and selling non-core parts of its business since the downturn on crude oil prices began in late 2014.
The Calgary-based company says the sale of the Piceance assets in northwestern Colorado will make it more efficient and improve its balance sheet.
In addition to the cash received, Encana will benefit by reducing its midstream commitments by approximately $430 million