Join        Login             Stock Quote

EnCana (ECA), PetroChina Unit Enter JV To Develop Duvernay Lands

 December 13, 2012 01:53 PM

(By Balachander) EnCana Corp. (NYSE: ECA) agreed to sell a 49.9 percent stake in around 445,000 acres in the Duvernay lands in Alberta to a subsidiary of PetroChina (NYSE: PTR) for C$2.18 billion (US$2.2 billion).

The Canada-based energy producer entered into a joint venture with PetroChina's Phoenix Duvernay Gas unit to develop its Duvernay land holdings in west-central Alberta.

Encana said it expects to more than double its planned pace of development in the Duvernay play beginning early in 2013.

[Related -Dividend Roundup: ATR, BKW, FUL, NHTB, PTR]

Under the terms of the agreement, EnCana received C$1.18 billion at closing and C$1.0 billion is payable over the next four years in the form of a carry of half of Encana's share of development capital. The companies plans to invest a total of $4 billion during the period.

Encana estimates that the Duvernay joint venture lands contain about 9 billion barrels of oil equivalent petroleum initially-in-place.

"Phoenix's investment demonstrates the tremendous value that Encana has created in this early life liquids rich play, and enables us to accelerate the pace at which the full production potential of our Duvernay lands can be achieved," commented Encana CEO Randy Eresman.

The North American natural gas producer remains the operator of the joint venture with its 50.1 percent working interest.

Encana expects to end the year with cash balances in excess of US$3.0 billion, including proceeds from the Phoenix deal, well ahead of the targeted US$2.5 billion in June 2012.

[Related -ConocoPhillips (COP), PetroChina (PTR) Sign Agreements On Australia Projects]

To date, Encana said it has increased its hedge position for 2013 to roughly 1.5 billion cubic feet per day (Bcf/d) at an average price of US$4.39 per million cubic feet (Mcf).

ECA shares rose 2.41 percent to trade at $21.25 on the NYSE on Thursday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageXerox Corp. (XRX): An Insider’s $500,000 Insider Buy

Last week was a healthy week of insider buying as 194 companies reported purchase records. The number read on...

article imageQihoo 360 Technology Co Ltd. (QIHU) Q2 Earnings Preview: A Green Monday

Qihoo 360 Technology Co Ltd. (NYSE:QIHU) will report its second quarter 2014 financial results on Monday, read on...

article imageSix Stocks that Could Outperform in the next 90 days

Earlier today, Goldman Sachs put out its list of the 50 stocks that Matter Most. It’s a list of the 50 read on...

article imageFoot Locker, Inc. (FL) Q2 Earnings Preview: Running Past the Street View

Foot Locker, Inc. (NYSE:FL) plans to report financial results for its second quarter ended August 2, 2014 read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.