Encana to sell Bighorn assets for about $1.8B

Associated Press |

Energy producer Encana has agreed to sell its Bighorn holding in Canada for about $1.8 billion to another Canadian company, the privately held Jupiter Resources.

Encana said Friday the sale includes about 360,000 acres of land in Canada with total net proved reserves of about 1.1 trillion cubic feet equivalent, mostly natural gas. It also includes Encana's working interests in all pipelines, facilities and service arrangements.

"Bighorn is a high quality asset that has not been receiving significant investment in 2014," Encana CEO Doug Suttles said in a statement. "Going forward, it should serve as an excellent foundational asset for Jupiter Resources."

The companies expect the Bighorn deal to close by the end of the third quarter.



Encana Corp. produces natural gas, oil and natural gas liquids. The company has long struggled with low commodity prices, and it has announced job cuts and slashed its dividend since former BP executive Doug Suttles took over as CEO last year. Suttles has said the company will focus on its five best resource areas across North America, instead of juggling 30 different areas.

In March, Encana said it reached a deal to sell Wyoming's Jonah field, one of the nation's largest natural gas fields, for $1.8 billion to an affiliate of TPG Capital, a global private investment firm.

In May, the company said it would spend about $3.1 billion to by the oil-rich Eagle Ford Shale assets in Texas.

U.S.-traded shares of Encana fell 15 cents to $23.76 in morning trading Friday. It shares had been up 32 percent so far this year through Thursday.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
RSGUF Rogers Sugar Inc. 4.84 -0.09 -1.84 400

Comments

Emerging Growth

Pressure Biosciences Inc

Pressure BioSciences Inc is a biological life sciences research company. It is engaged in the development and commercialization of a platform technology called pressure cycling technology.

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

GoCoin

Blockchain currencies (e.g. Bitcoin) provide a new disruptive way to transfer value between parties over the internet as opposed to going through banks. GoCoin provides online merchants with a suite…