June 21, 2012 / 2:13 PM / 6 years ago

Encana spending to exceed cash flow on oil hunt

CALGARY, Alberta, June 21 (Reuters) - Encana Corp’s capital spending will likely exceed its cash flow for at least the next 18 months as the company accelerates its transition to more oil and liquids-rich natural gas production, its chief executive said on Thursday.

Encana, which said it will boost spending by $600 million this year to increase output of the more valuable fuels, has also had considerable interest in packages of stakes in North American liquids-rich development prospects from potential partners, CEO Randy Eresman said at a company-sponsored investor meeting.

Meanwhile, the Calgary-based company expects dry gas output at the Haynesville shale gas play in Louisiana, Greater Sierra project in British Columbia and coalbed methane fields in Alberta will decline in the next few years as it cuts spending on them due to low gas prices, Eresman said.

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