Jupiter Resources Inc., Calgary, has signed an agreement with Encana Corp. to acquire the firm’s Bighorn assets in Alberta for $1.8 billion, effective May 1.
The transaction, expected to close by the end of the third quarter, includes 360,000 net acres along with Encana’s working interests in all pipelines, facilities, and service arrangements.
Total net proved reserves in the acreage at yearend 2013 are 1,100 bcf of natural gas equivalent, 75% of which is gas. First quarter production totaled 319 MMcfed of liquids-rich natural gas.
Doug Suttles, Encana president and chief executive officer, said Bighorn is a “high-quality asset that has not been receiving significant investment” so far this year. “Going forward, it should serve as an excellent foundational asset for Jupiter Resources,” he said.
Encana, which has sought to replace gas production with high-margin oil and liquids production, last week completed its $3.1 billion purchase of Eagle Ford acreage first reported in May (OGJ Online, Dec. 12, 2013; June 20, 2014). In March the company divested certain gas properties in Jonah field, also for about $1.8 billion (OGJ Online, Mar. 31, 2014).