CALGARY, Alberta, June 20, 2017 (GLOBE NEWSWIRE) — Encana’s (TSX:ECA) (NYSE:ECA) cube development approach combined with advanced completion practices have significantly enhanced its Permian well performance and led to a 20 percent increase in the company’s Permian type curves and 700 new premium return locations. The 700 new premium return locations is five times the quantity the company will drill this year and brings total premium return locations in the play to 3,450. Encana expects it will develop less than 30 percent of its Permian premium inventory through 2021.
“Through our focus on operational excellence, innovation and quality corporate returns we continue to make Encana more valuable and resilient,” said Doug Suttles, Encana President and CEO. “The company’s world-class Permian asset comprises thousands of feet of stacked resource. Our cube development is delivering leading well performance and efficiencies. We believe this approach will become the industry standard for stacked pay development.”
Cube development drives capital efficiency, boosts well performance and grows premium inventory.
Encana’s fast paced and structured innovation is changing the way stacked plays are developed. The company’s cube development approach targets multiple stacked pay zones from a single location to deliver significant value above ground as well as below ground in the reservoir.
Above ground, Encana’s cube development drives significant capital and operational efficiencies which are delivering drilling and completions savings of approximately $1.2 million per well compared to traditional single well development. Encana expects to hold its 2017 Permian well costs flat compared to 2016 on a like-for-like basis. Below ground in the reservoir, cube development maximizes production and resource recovery and minimizes or eliminates risk of value erosion connected with infill drilling and offset hydraulic fracturing interference.
The combination of tighter well density, precision targeting, advanced completion practices and longer laterals are delivering strong results and improved type curves in addition to enabling Encana to increase its Permian premium return inventory by 25 percent.
Innovation that drives value and creates upside
Encana is focused on creating additional value and upside in its stacked pay Permian assets through the combination of its advanced completions design and targeting new benches. The company began applying its advanced completion designs in the Permian during the second quarter. Advanced completion designs have delivered up to a 60 percent well performance improvement in the Eagle Ford and the Montney.
Highly resilient to lower commodity prices
Encana launched its five-year plan in October 2016. This included an expected 300 percent increase in non-GAAP cash flow, a doubling of corporate margin and a self-funding capital program post 2017. This plan was built on a flat $55.00 WTI oil price and $3.00 NYMEX through to 2021. Continued operational improvements and productivity gains across the portfolio in the first half of 2017 have further enhanced Encana’s resiliency. The company now expects it can deliver its five-year growth plan in a flat $50 WTI oil price environment, with a self-funding capital program post 2017.
Encana Corporation (“Encana”) is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing natural gas, oil and natural gas liquids (NGLs). By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.