Colorado assets proved reserves were 96.8 million barrels of oil equivalent.
October 8, 2015
by PLANT STAFF
CALGARY — Encana Corp.’s wholly-owned subsidiary Encana Oil & Gas (USA) Inc. has reached an agreement to sell its Denver Julesburg (DJ) Basin assets in Colorado for about US$900 million.
The Calgary-based energy company described the buyer as a “new entity” that’s 95% owned by Canada Pension Plan Investment Board and 5% by The Broe Group.
Encana said it will use the cash proceeds to strengthen its balance sheet “and create greater flexibility in this market environment.”
The transaction includes all of Encana’s DJ Basin 51,000 net acres. During the first half of the year, it produced an average of 52 million cubic feet per day (MMcf/d) of natural gas and 14,800 barrels per day of crude oil and natural gas liquids.
Estimated proved reserves were 96.8 million barrels of oil equivalent (over 40% natural gas).