By OGJ editors
HOUSTON, Dec. 7 -- EnCana Corp., Calgary, plans to acquire $255 million in Fort Worth basin properties in what may represent the company's first foray into the Barnett shale resource play in North Texas.
The seller is Progress Fuels Corp., Raleigh, NC, a subsidiary of Progress Energy, which owns electric utilities in Florida and the Carolinas. Closing is expected by yearend.
EnCana is highly oriented toward resource or nonconventional gas plays in North America (OGJ, July 12, 2004, p. 39). One source said the properties to be acquired are producing 30 MMcfd of gas.
Progress plans to use the proceeds to cut debt. After closing, Progress will have net gas production of 22 bcfe/year. The company owns proved developed and undeveloped gas and oil reserves in East Texas and western Louisiana.
