Direct Energy acquires Carrot Creek Assets from Encana

Centrica’s North American subsidiary, Direct Energy, has agreed to acquire a package of liquids-rich natural gas assets located in west central Alberta (the Carrot Creek Assets) from Encana for C$58m (£37m) in cash.

As part of the transaction, Encana will also receive from Direct Energy a number of gas-producing wells and related infrastructure in southern Alberta.

The Carrot Creek Assets include 80 producing wells, associated infrastructure and a gas-processing plant with natural gas liquid extraction capability.

The transaction will provide Direct Energy with a net additional 25.6-billion cubic feet equivalent (Bcfe) of proven and probable reserves, an increase of approximately four per cent, split 42 per cent gas and 58 per cent liquids.