Encana selling 90K acres of natural gas land in Texas for $530M
by Canadian Manufacturing Staff
Land had combined average production of 100 million cubic feet per day in 2013
CALGARY—Encana Corp. said its American subsidiary has reached a deal to sell 90,000 acres of natural gas-producing land in Texas for roughly $530-million.
According to the Calgary-based firm, Encana Oil & Gas (USA) Inc. is selling the land northeast of Houston to an undisclosed buyer.
Last month, Encana sold a massive parcel of natural gas land in Wyoming for US$1.8-billion.
“Consistent with our strategy, this transaction builds on our efforts to unlock value from properties within our massive asset base,” Encana president and CEO Doug Suttles said in a statement.
“We remain focused on developing our core growth plays and extracting additional value from our base assets.”
The land had a combined average production in 2013 of about 100 million cubic feet per day of natural gas and about 1,200 barrels per day of total liquids.
Reserves were estimated to be more than 200 billion cubic feet equivalent compromised of 97 per cent natural gas.
The deal is subject to customary closing conditions and is expected to be completed in the second quarter of this year.
