Encana Corp. unit Encana Oil & Gas (USA) agreed to sell its Barnett shale natural gas assets in the Fort Worth basin to various partnerships managed by EnerVest Ltd. for $975 million as part of Encana’s previously announced plans to divest up to $2 billion in noncore assets by yearend.
The properties produce 125 MMcfd equivalent of gas and include associated gathering pipelines on 50,000 net acres.
Encana said it wanted to sell the Barnett shale assets to take advantage of higher-value liquids plays (OGJ Online, Aug. 25, 2011).
The Barnett shale sale, expected to close yet this year, is subject to normal closing conditions and regulatory approvals. After closing of this transaction, Encana will have divested $1.7 billion worth of assets.
Encana said the Barnett shale, which it entered through a corporate acquisition in 2004, provided the company with foundational knowledge it has applied across its newer US and Canadian resource plays.