Encana’s $900-million Denver asset deal

DENVER, October 8, 2015 – Encana has reached a deal to sell its onshore assets in the Denver Julesburg Basin valued at $900 million, the Canadian natural gas company said in a statement Thursday. The move is an attempt to reduce the company’s net debt, which is expected to be reduced by $3 billion by the end of 2015.

“Our efforts to transform our portfolio, improve efficiency and grow margins are increasing returns and strengthening our balance sheet, positioning Encana for success throughout the commodity cycle,” Doug Suttles, the Encana president and CEO, said on Thursday.

Encana’s Denver assets are located in the Colorado play and produce an average of 1.5 mcm (52 mcf) of natural gas per day and 14,800 barrels of crude oil and natural gas liquids. At the end of 2014, the company estimated that proved reserves stood at 96.8 million barrels of oil equivalent, of which 40 percent is comprised of natural gas.

The deal is expected to close in the fourth quarter of this year and to be effective April 1, 2015.

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