Ember Resources Inc., Calgary, has agreed to acquire the majority of the Clearwater assets in southern and central Alberta belonging to Encana Corp. for $605 million (Can.).
The deal, expected to close in first-quarter 2015, encompasses 1.2 million net acres and more than 6,800 producing wells with second-quarter average production of 180 MMcfd of natural gas equivalent.
“This acquisition establishes Ember as the leading producer of coalbed methane in Canada,” commented Doug Dafoe, Ember president and chief executive officer. The company will now own interests in 2.2 million net acres, with combined gross production of 290 MMcfed.
Ember and its shareholder Brookfield Capital Partners have recently consolidated a significant land and production base in the Horseshoe Canyon coal bed methane fairway in Alberta through several acquisitions.
Last year, the company agreed to make a $214-million acquisition of oil and gas producing properties in the Nevis, North Grant Lands, and South Grant Lands areas of western Alberta from Apache Corp. (OGJ Online, Aug. 15, 2013).
Encana will retain 1.1 million net acres in Clearwater, including 480,000 net acres along the eastern edge of the Horseshoe Canyon CBM Fairway.
“This divestiture continues to advance our strategy,” said Doug Suttles, Encana president and chief executive officer. “We are unlocking additional value from noncore dry gas assets as we focus on liquids-rich growth areas. Our growth portfolio now includes the top two resource plays in Canada, the Montney and the Duvernay, and the top two resource plays in the United States, the Eagle Ford and, by yearend, the Permian basin.”
Encana in May agreed to acquire 45,500 net acres in Karnes, Wilson, and Atascosa counties in the Eagle Ford for $3.1 billion (OGJ Online, May 7, 2014; June 20, 2014). Last month, the company agreed to acquire Athlon Energy Inc. for $5.93 billion, taking possession of 140,000 net acres in the heart of the oil-rich Midland basin in several counties including Midland, Martin, Howard, Glasscock (OGJ Online, Sept. 29, 2014).