Encana sells Colorado assets

CALGARY, June 9, 2017 – Encana Corporation will sell its Piceance gas assets to Caerus Oil and Gas, the Calgary-based player said on Friday. The deal covers some 2,225 square kilometres worth of Colorado acreage.

The agreement with US entity Caerus carries a value of USD 735 million. In addition to that, Encana will “market Caerus’ production related to the assets,” it said in a press release.

The Colorado acreage registered an average daily output of 6.8 mcm (240 mcf) of natural gas and 2,178 barrels of liquids over the first quarter of the year. Piceance gas reserves stood at an estimated 23 bcm (814 bcf) at the end of 2016.

“This transaction advances our strategy, makes the company more efficient and delivers significant proceeds that we will use to further strengthen our balance sheet,” Encana President & CEO Doug Suttles said in comments on the agreement.

Read our latest insights on: