The Canadian Press - ONLINE EDITION

Calgary energy producer Encana sells Bighorn assets for US$1.8 billion

  • Print

CALGARY - Encana Corp. is selling its Alberta-based Bighorn natural gas properties to Jupiter Resources for about US$1.8 billion, as the Calgary energy producer puts its focus on specific regions for growth.

Encana said Friday that it hasn't been putting a lot of investment in its Bighorn assets this year.

"This transaction advances our strategy by unlocking value from our portfolio as we focus on developing our core growth plays and extracting additional value from our base assets," CEO and president Doug Suttles said in a news release.

"Bighorn is a high quality asset that has not been receiving significant investment in 2014. Going forward, it should serve as an excellent foundational asset for Jupiter Resources," Suttles said.

The sale to Jupiter Resources includes about 360,000 net acres of land along with Encana's working interests in all pipelines and other facilities.

In May, Encana spent US$3.1 billion to enter the oil-rich Eagle Ford shale district in Texas, tilting the company more towards oil.

Encana has honed in on core areas: the Montney and Duvernay in Western Canada; the DJ Basin in Colorado; the San Juan Basin in New Mexico and the Tuscaloosa Marine Shale in the southeastern United States. The Eagle Ford becomes a sixth.

Encana could focus on up to eight core areas, Suttles has said.

The company also recently sold dry gas assets in Wyoming and East Texas, which are less attractive than ones that produce oil and natural gas liquids.

Last fall, Suttles unveiled a new strategy for Encana, which had for years struggled with low natural gas prices, and juggled operations in dozens of different regions.

Encana (TSX:ECA) also cut 20 per cent of its staff and spun off some of its Alberta land holdings into a separate publicly traded business called PrairieSky Royalty Ltd.

Jupiter Resources is a private oil and gas exploration and production company focused on natural gas properties in Western Canada and is also headquartered in Calgary.

"We are very excited about the opportunity to actively develop the Bighorn assets, one of North America’s premier liquids-rich natural gas projects in an area that has generated some of Canada’s most prolific well results in recent years," CEO Simon Bregazzi said in a statement.

The deal is expected to close later this year.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Bombers look to snap two game slide vs. Montreal

View more like this

Photo Store Gallery

  • A goose flys defensively to protect their young Wednesday near Kenaston Blvd and Waverley -See Bryksa 30 Day goose challenge- Day 16 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • JOE.BRYKSA@FREEPRESS.MB.CA Local-(Standup photo)- Humming Around- A female ruby -throated hummingbird fly's through the bee bomb  flowers Friday at the Assiniboine Park English Garden- Nectar from flowers are their main source of food. Hummingbirds wings can beat as fast as 75x times second. Better get a glimpse of them soon the birds fly far south for the winter - from Mexico to South America- JOE BRYKSA/WINNIPEG FREE PRESS- Sept 10, 2009

View More Gallery Photos

Poll

Did you suffer any damages from Thursday's storm?

View Results

View Related Story

Ads by Google