Canadian oil and gas giant EnCana Corporation is to sell conventional natural gas assets producing approximately 7,250 barrels of oil equivalent per day to a Calgary-based oil and gas producer for approximately $219 million.
The transaction, which is expected to close before August 30, 2004, is comprised of natural gas properties in northeast Alberta in Canada with proved reserves estimated to be approximately 66 billion cubic feet.
This sale of mature, non-core assets is part of a divestiture program EnCana announced alongside its acquisition of the long-life assets of Tom Brown Incorporated in April for which it paid $2.7 billion.
On July 15 this year, for example, EnCana disclosed that it was to sell conventional oil and gas assets producing approximately 16,800 barrels of oil equivalent per day to Harvest Energy Trust for approximately $395 million. That transaction included properties in east central and southern Alberta producing predominantly medium and heavy oil.
To date in 2004, EnCana has divested of conventional, non-core properties producing about 50,000 barrels of oil equivalent per day for approximately $1.3 billion.
Including all 2004 acquisitions and divestitures, EnCana expects to grow production by 15% this year to between 725,000 and 765,000 barrels of oil equivalent per day.