Encana Sells Colorado Gas Asset to Caerus
Canadian producer Encana said June 9 it has reached an agreement to sell its Piceance natural gas assets in northwestern Colorado to Denver-based independent Caerus Oil and Gas for $735mn cash
Encana will reduce its midstream commitments by some $430mn on an undiscounted basis, and will market Caerus' production related to the assets.
The Piceance assets include some 550,000 net acres of leasehold and approximately 3,100 operated wells which produced an average 240mn ft3/d gas and 2,178 b/d liquids in 1Q2017. Estimated year-end 2016 proved reserves were 814 bn ft3 equivalent. Closure of the deal is expected in 3Q2017.
Earlier today, Centrica and Qatar Petroleum announced divestment of their Canadian E&P gas business to a three-way consortium for some $535mn.
Mark Smedley