Encana to Sell East Texas Properties for $530 Million

Encana Corporation (TSX:ECA,NYSE:ECA) announced that its 100% owned subsidiary, Encana Oil & Gas (USA) Inc., has reached an agreement with an undisclosed purchaser to sell, for approximately $530 million, several properties located primarily in Leon and Robertson counties of East Texas. The sale is expected to close in the second quarter of 2014, and will be subject to normal closing conditions.

As quoted in the press release:

The combined areas represent about 90,000 net acres and 2013 average production of about 100 million cubic feet per day (MMcf/d) of natural gas and about 1,200 barrels per day (bbls/d) of total liquids. Year-end 2013 total estimated proved reserves of the properties equate to just over 200 billion cubic feet equivalent (Bcfe) compromised of 97% natural gas.

Encana CEO, Doug Suttles, said:

Consistent with our strategy, this transaction builds on our efforts to unlock value from properties within our massive asset base. We remain focused on developing our core growth plays and extracting additional value from our base assets.

Click here to read the Encana Corporation (TSX:ECA,NYSE:ECA) press release