Posted by OilVoice Press - OilVoice
Encana Corporation (Encana) (TSX, NYSE: ECA), announced 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.
Visit source siteEnCanaSan Juan BasinUnited StatesonshoreEncana Oil & GasUSANew MexicoDJR EnergyTSXNYSE