Encana Corp. (ECA) said it would sell its Denver-Julesburg (D-J) 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 D-J 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 Oct. 8.
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 NGL, 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 D-J 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 D-J deal is expected to close in the fourth quarter, the company said.
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