Apollo Global in discussions to buy Alberta oil assets from Encana - WSJ

Thu Jun 12, 2014 8:17pm EDT
 
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June 12 (Reuters) - Private equity firm Apollo Global Management LLC is in talks to buy Encana Corp's Bighorn Properties in Alberta, Canada in a deal expected to be worth about $1.8 billion, the Wall Street Journal reported.

A deal has not been reached and may still collapse, the report said, citing certain people close to the matter. (link.reuters.com/syv99v)

The report follows other deals by Apollo in natural gas over the last few weeks.

Apollo agreed to commit $700 million of capital in a partnership with oil and gas producer Zenergy LLC last week which will focus on oil assets in the Mid-Continent, Texas and the Arkansas-Louisiana-Texas regions.

The company also agreed to provide $500 million to CSV Midstream Solutions Corporation in order to expand the natural gas and liquids provider's operations in the Western Canadian Sedimentary Basin.

After years of weak prices for the fuel, Encana is selling off natural gas properties and adding more valuable oil and natural-gas liquids production to boost earnings.

Encana, Canada's largest oil producer has moved to rapidly boost its oil production. The company agreed to pay $3.1 billion for Freeport-McMoran Copper & Gold Inc's FCX.N properties in the south Texas Eagle Ford shale-oil field in May.

Encana was not immediately available for comment.

(Reporting by Narottam Medhora in Bangalore; Editing by Cynthia Osterman)