Unconventional gas spurs EnCana's output

By OGJ editors
HOUSTON, Oct. 27 -- EnCana Corp. said its companywide natural gas production was up 8% to 3.9 bcfd in the quarter ended Sept. 30 on a gain of 16% in its North American unconventional gas plays.

East Texas output averaged 340 MMcfd, up 135% from the same quarter a year ago, due to new wells coming on production and a 2007 acquisition that doubled its interest in the Jurassic Deep Bossier play.

EnCana's US gas production was up 24% on drilling and operational success in the Fort Worth and Piceance basins and Jonah field in Wyoming.

In Canada, coalbed methane, Cutbank Ridge, and Bighorn increased production by 23%, partly offset by natural declines from conventional properties, resulting in an overall 16% gain in the Canadian Foothills division.

EnCana added 25,000 net acres in North Louisiana in the quarter, bringing its Haynesville shale position to 400,000 net acres of land plus 63,000 net acres of mineral rights. EnCana and its partner Shell Exploration & Production Co. have an industry-leading land position in the area, where they are running six rigs and will target drilling and completion of the first well in the mid-Bossier shale in the fourth quarter.

EnCana holds more than 700,000 acres in the Montney play in Northeast British Columbia and northwestern Alberta, and EnCana and Apache Corp. have completed seven wells this year in the Horn River basin shale play. One of the most recent wells averaged almost 8 MMcfd in the first 30 days.

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