Encana Corp. is selling close to 90,000 net acres of natural gas-rich properties in the Deep Bossier play of East Texas for $530 million, the company said Tuesday.
The buyer for the properties in Leon and Robertson counties wasn't disclosed by Encana Oil & Gas (USA) Inc. The combined areas produced on average about 100 MMcf/d of gas and 1,200 b/d of liquids in 2013. At year's end, total estimated proved reserves were 200 Bcfe-plus, 97% weighted to natural gas.
"Consistent with our strategy, this transaction builds on our efforts to unlock value from properties within our massive asset base," CEO Doug Suttles said. "We remain focused on developing our core growth plays and extracting additional value from our base assets."
Encana, still the largest gas producer in Canada and one of the largest in the United States, this year is putting 75% of its capital spending only in the Montney Formation, Duvernay Shale, Tuscaloosa Marine Shale, Denver-Julesberg Basin and San Juan Basin (see Shale Daily, Feb. 13).
Over the past month, it has sold stakes in Wyoming's Jonah Field for $1.8 billion (see Shale Daily, March 31). It also has sold its liquefied natural gas fueling businesses in the United States and Canada.
Encana gained entry into East Texas in 2004 with the purchase of Denver independent Tom Brown Inc. (see Daily GPI, April 16, 2004). As the unconventional onshore buying spree began to heat up, Encana in 2007 paid Leor Exploration & Production LLC about $2.55 billion to buy out its stake in the Amoruso Field, which is part of Encana's Deep Bossier holdings (see Daily GPI, Nov. 6, 2007; July 31, 2006). Former CEO Randy Eresman seven years ago called the Deep Bossier sand and shale formation "the best emerging unconventional gas play in North America," with potential recovery of 2.4-3.3 Tcf.
Not included in the sale are Encana's Haynesville Shale properties, where the company has begun to develop once again. The sale is expected to close by the end of June.