Encana Oil & Gas (USA) Inc. plans to sell its North Texas natural gas producing properties to certain partnerships managed by EnerVest, Ltd. of Houston for $975 million.
With completion of this divestiture, plus other non-core asset sales, Encana expects to have net divestitures of $1.7 billion by year-end, within its 2011 target of $1-2 billion.
“The sale of this North Texas asset in the Barnett Shale is part of Encana’s ongoing portfolio optimization aimed at enhancing the long-term value of the company’s vast resource potential,” said Randy Eresman, Encana’s president and CEO.
“Since we first acquired substantive Barnett Shale production in North Texas seven years ago, we have greatly expanded production and assets on other earlier-life resource plays in Texas and Louisiana. Our Texas and Haynesville key resource plays are producing more than 750 MMcf/d and they offer long-term growth opportunities in our well-established Mid-Continent business unit.”
Encana recently completed the sale of a portion of its Piceance Basin midstream assets for $590 million.