Monday, April 25, 2011

EnCana seeks JV partner for development of unconventional gas in British Columbia

Encana Corporation has engaged RBC Capital Markets and Jefferies & Company Inc as its exclusive agents in connection with the proposed sale and/or joint venture of selected interests of the company in Northeast British Columbia. The company’s Greater Sierra area has been divided into two areas of opportunity - an asset sale and a joint venture. A portion of the company’s holdings are also being offered for joint venture.

Greater Sierra: The acquisition area for sale includes all lands, production and related infrastructure. The joint venture area is available for partnering with Encana on its existing production and infrastructure and future development plans.

Acquisition area:
-- Jean Marie: 1,500 net sections of land (95% WI)
-- 73 MMcfe/d (97% gas) - sales October 2010
-- 593 undrilled booked locations
-- Shale Gas: 35 net sections of land (93% WI)
-- 36 Horizontal locations in Muskwa, Otter Park and Evie.

Joint venture area:
-- Jean Marie: 1,281 net sections of land (90% WI)
-- 129 MMcfe/d (96% gas) - sales October 2010
-- 856 undrilled locations (575 booked + 281 unbooked).

Horn River: Offered for joint venture
-- 52 net sections of land (100% WI)
-- 120 Horizontal locations in Muskwa, Otter Park and Evie.

Earlier on 9-Feb-2011, PetroChina and Encana have signed a Co-operation agreement, that PetroChina would acquire a 50% interest in Encana’s Cutbank Ridge business assets in British Columbia and Alberta at a consideration of C$5.4 billion (US$5.451 billion). Under the Co-operation agreement, the two companies would establish a 50/50 Joint Venture (JV) that would ambitiously grow natural gas production from the Cutbank Ridge lands for years ahead.

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