Encana posts loss, accelerates activity in U.S. Permian basin

Thu Nov 12, 2015 11:19am EST
 
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* Posts Q3 net loss on $1.07 bln writedown charge

* To spend $150 mln more than planned on Permian basin in Q4

* Q3 oil and gas-liquids output up 35 pct (Adds comment, Deep Panuke details)

By Nia Williams

CALGARY, Alberta, Nov 12 (Reuters) - Canadian oil and natural gas producer Encana Corp reported a quarterly loss on Thursday but reported an increase in oil production and said it is speeding up spending in the Permian basin in Texas.

Encana plans to spend an extra $150 million in the Permian shale field in the current quarter that was originally earmarked for 2016. The company expects total capital spending of $2.2 billion this year, the upper end of its earlier forecast.

Even so, Encana is continuing to clamp down on costs as the oil price slump drags on.

"I'm very confident our efficiencies will be even better next year than this year. We'll build off the operating performance we've achieved," said chief executive Doug Suttles.

Encana has cut its workforce by 40 percent since the end of 2012 and Permian horizontal drilling and completion costs are down about $2 million per well this year.   Continued...