Using the extra money expected to be generated by planned asset sales in Ecuador and the Gulf of Mexico this year, EnCana Corp. plans to double the size of its potential stock buyback to 10% from 5%.

The original normal course issuer bid, which was launched last October, allowed North America’s largest independent to buy back up to 5% of its stock. It has already bought about 21.2 million shares at an average price of $54.56/share. In the latest news, the Toronto Stock Exchange approved an amendment allowing EnCana to double its buyback, equal to a total of about 46 million shares, until Oct. 28.

“EnCana’s 2005 noncore divestitures are expected to bring in substantial funds and our capital program is expected to be funded by operating cash flow,” said CEO Gwyn Morgan. “EnCana’s 20 million net acres of undeveloped North American land contain unbooked resource well beyond our proved reserves. Therefore, we believe this amendment to our bid will provide the opportunity to further increase net asset value per share.”

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