Encana, Crestone, Canadian Pension Plan, Broe Say Sale of Encana’s DJ Basin Assets will Close by the End of July 

In a jointly-sourced news release dated June 30, 2016, Encana Corporation (ticker: ECA), Crestone Peak Resources, which is 95 percent owned by Canada Pension Plan Investment Board and five percent by The Broe Group, said that Encana Oil & Gas (USA) Inc., expects the previously announced sale of its Denver Julesburg Basin assets in Colorado to Crestone will close by the end of July 2016.

The $900 million-deal was originally announced last October.

ECA’s DJ Basin position spans 51,000 net acres and produced an average of roughly 23.4 MBOEPD (63% liquids) in H1’15. Proved reserves, as of year-end 2014, totaled 96.8 MMBOE (about 60% liquids). Encana no longer makes any reference to the DJ assets in its investor presentation or in any of the operations maps on its website.

“The DJ is a very solid asset with good returns in today’s environment,” said Doug Suttles, President and Chief Executive Officer of Encana, in the company’s Q2’15 conference call. “We’ve got a great track record there… In fact, I think one of the consulting houses not too long ago actually issued a report saying we had the most economic wells in the play.”

“We are pleased to have finalized the details of the transaction, and both Encana and Crestone are committed to closing the deal by the end of July 2016,” Suttles said in a statement. “We are now focused on handover and transition items and are confident that we will conclude the transaction within the next four weeks.”

The sale has an effective date of April 1, 2015 and includes all of Encana’s DJ Basin acreage, comprising 51,000 net acres.

“Crestone remains committed to closing the acquisition of Encana’s DJ assets in the coming weeks and we are excited to welcome Encana’s DJ team into Crestone,” said Avik Dey, Managing Director and Head of Natural Resources at Canada Pension Plan Investment Board.


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