Encana sells half of Clearwater assets for $605M
It's the latest major deal for Calgary-based EnCana, which has been shifting its focus away from natural gas and towards oil and gas liquids
CALGARY—Encana Corp. will sell more than 6,800 producing gas wells and other portions of its Clearwater assets in southern and central Alberta for about $605 million to Ember Resources Inc.
The deal will more than double Ember’s land and production holdings in Alberta, which are concentrated on coal bed methane lands in the Horseshoe Canyon area.
The Clearwater assets going to Ember include about 1.2 million acres of land (485,600 hectares) and wells that produce the equivalent of 180 million cubic feet of natural gas per day.
Encana will retain about 1.1 million acres of its Clearwater assets, including 480,000 acres along the Horseshoe Canyon Fairway.
It’s the latest major deal for Calgary-based EnCana, which has been shifting its focus increasingly away from natural gas and towards oil and gas liquids.
Encana announced last week that it will buy Texas-based Athlon Energy Inc. to gain entry into the oil-rich Permian formation.
It has also been divesting Canadian assets, including through the spinoff of some of its assets into PrairieSky Royalty Ltd. (TSX:PSK) and the recently completed sale of its Bighorn assets in Alberta to Jupiter Resources.