UPDATE 1-Encana to sell Denver Julesburg basin assets for $900 mln

Thu Oct 8, 2015 7:31am EDT
 
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Oct 8 (Reuters) - Encana Corp said it would sell its Denver Julesburg basin assets in Colorado for $900 million, the latest divestitures by the Canadian oil and gas producer as it focuses on its high-value gas liquids and oil properties.

The company will sell all of its Denver Julesburg acreage comprising 51,000 net acres to a joint venture owned by Canada Pension Plan Investment Board (CPPIB) and real estate manager Broe Group, Encana said on Thursday.

The assets produced an average of 52 million cubic feet per day of natural gas and 14,800 barrels per day of crude oil and natural gas liquids, Encana said.

Under Chief Executive Doug Suttles, Encana is transforming into a major oil producer by concentrating spending on regions rich in gas liquids and oil and selling off natural gas assets.

The company in August sold its Haynesville natural gas assets in northern Louisiana for $850 million to GEP Haynesville LLC.

Including the Denver Julesburg sale, cash proceeds from divestitures in 2015 will be about $2.7 billion, the company said.

Encana said it expects to have reduced its net debt by $3 billion by end of the year.

The Denver Julesburg deal is expected to close in the fourth quarter, the company said.

(Reporting by Anannya Pramanick in Bengaluru; Editing by Sriraj Kalluvila)