Encana Sheds More Assets

Encana continues to shed non-core assets so it can focus on its core holdings: the Montney, Anadarko and Permian basins.

Encana Corporation subsidiary Newfield Exploration Mid-Continent Inc. signed an agreement to sell its natural gas assets in Oklahoma's Arkoma Basin to an undisclosed buyer.

Total cash consideration to Encana is $165 million. The agreement is expected to close in the third quarter of 2019. 

"Along with our recently announced agreement to exit China, this transaction shows our commitment to realize value from non-core assets. Proceeds from this sale will be directed to our balance sheet," said Doug Suttles, Encana president and CEO.

Encana's Arkoma assets include approximately 140,000 net acres of leasehold and current production of approximately 77 mmcf equivalent/d (98 per cent natural gas).

CIBC Griffis & Small provided advisory services to Encana for the transaction. Davis, Graham & Stubbs LLP served as Encana's external legal counsel.