CALGARY, Alberta, Oct. 01, 2018 (GLOBE NEWSWIRE) — Encana Corporation (Encana) (TSX, NYSE: ECA), announced today that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., has reached an agreement to sell its San Juan assets, located in New Mexico for US$480 million to Denver-based DJR Energy, LLC.
“This transaction is consistent with our strategy and our objective of delivering quality returns to our shareholders. It adds to our financial strength and is aligned with our focus on maximizing the value of our assets and disciplined allocation of capital,” said Doug Suttles, Encana President & CEO. “This is a very exciting year for our company as we deliver strong growth and generate free cash flow, demonstrating the strength and quality of the business we have built.”
Encana’s San Juan assets include approximately 182,000 net acres. In 2017, the assets delivered average production of approximately 5,400 barrels of oil equivalent per day including 3,900 barrels per day of liquids. The sale is subject to the satisfaction of normal closing conditions and customary closing adjustments. The transaction is expected to close in the fourth quarter of 2018 with an effective date of April 1, 2018.
Encana is a leading North American energy producer that is focused on growing its strong portfolio of diverse resource plays, held directly and indirectly through its subsidiaries, producing oil, natural gas liquids and natural gas. 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.