Ember Resources to buy Alberta gas properties from Encana for $605 million
Assets produce the equivalent of 180 million cubic feet of natural gas per day.
CALGARY — Encana Corp has agreed to sell a more than 6,800 producing gas wells and other portions of its Clearwater assets in southern and central Alberta for about $605 million to Ember Resources Inc.
The deal will more than double Ember’s land and production holdings in Alberta, which are concentrated on coal bed methane lands in the Horseshoe Canyon area.
The Clearwater assets going to Ember include about 1.2 million acres of land (485,600 hectares) and wells that produce the equivalent of 180 million cubic feet of natural gas per day.
Encana will retain about 1.1 million acres of its Clearwater assets, including 480,000 acres along the Horseshoe Canyon Fairway.
It’s the latest major deal for Calgary-based EnCana, which has been shifting its focus increasingly away from natural gas and towards oil and gas liquids.
It has also been divesting Canadian assets, including through the spinoff of some of its assets into PrairieSky Royalty Ltd. and the recently completed sale of its Bighorn assets in Alberta to Jupiter Resources.
© 2014 The Canadian Press