UPDATE 1-Canada's Encana to sell Haynesville natgas assets for $850 mln
(Adds details from statement, background)
Aug 25 (Reuters) - Canadian oil and gas producer Encana Corp said on Tuesday it will sell its Haynesville natural gas assets in northern Louisiana for $850 million to GEP Haynesville LLC.
Encana also said it will reduce its gathering and midstream investments by about $480 million on an undiscounted basis by 2020.
Under Chief Executive Doug Suttles, Encana has been focusing on transforming into a major oil producer by concentrating spending on regions rich in high-value gas liquids and oil and selling off natural gas assets.
The company has said it plans to invest in oil-rich shale fields of Permian, Eagle Ford, Duvernay and Montney in 2015.
GEP Haynesville LLC is a joint venture between GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP.
GSO Capital Partners, a unit of Blackstone Group LP, is a credit-focused alternative asset management firm.
Encana will transport and market GeoSouthern's Haynesville production on a fee for service basis for the next five years, the company said.
The Haynesville natural gas assets include about 112,000 net acres of leasehold, plus additional fee mineral lands. Continued...