Calgary-based Encana Corp., which is training more resources in the Permian Basin, said Monday it would sell the Arkoma Basin assets acquired in the takeover of Newfield Exploration Co. for $165 million.
The sale to an undisclosed buyer is from its recently acquired subsidiary. The Arkoma assets include about 140,000 acres, with current production at roughly 77 MMcf/d.
"Along with our recently announced agreement to exit China, this transaction shows our commitment to realize value from noncore assets. Proceeds from this sale will be directed to our balance sheet," said CEO Doug Suttles.
Encana’s strategy today focuses on the core three production zones of the Permian, the Anadarko Basin in northwestwestern Oklahoma and the Montney formation in Western Canada.
Encana is on a mission to improve its annual savings by $250 million following its completion of the $7.7 billion stock-and-debt Newfield acquisition in February. Encana had trimmed its total workforce by 15% and reduced its executive ranks by 35% as of the first quarter.
In April management said it had cut well costs in its Anadarko assets by $1 million. In a June update to investors, Encana said those assets performed better than expected early in the year in terms of production.