Encana to Spend $3.1 Billion in Texas

The Globe and Mail reported that Encana Corporation (TSX:ECA) plans to buy a tract of land in the oil-rich Eagle Ford play in Texas from Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) for $3.1 million. According to the Globe, the buy is part of a strategic shift by Encana, and the company is betting it can get more out of the oil play than Freeport estimates.

As quoted in the publication:

This marks Encana’s first major acquisition of producing assets since 2007, when it bought Leor Energy’s share of another Texas operation for $2.55-billion. Encana has spent the past five months selling assets in order to narrow its focus on oil and natural gas liquids. The deal, Encana said, will roughly double its oil production and speed up its transition away from natural gas. It gives the company a sixth key region.

Click here to read the full Globe and Mail article.