DJR Energy LLC, Denver, will acquire from Encana Oil & Gas (USA) Inc. its San Juan basin assets in New Mexico in a $480-million deal.
The assets include 182,000 net acres that delivered average production of 5,400 boe/d, including 3,900 b/d of liquids, in 2017. When combined with existing assets, DJR Energy will have over 350,000 net acres focused in the oil window of the basin with production over 6,000 b/d oil equivalent, and an inventory of over 1,100 'high value' drilling locations, the company said.
Encana continues to focus on liquids growth in the Montney in western Canada and is confident in its ability to hit the fourth-quarter target range, Jefferies analysts said in a morning note (OGJ Online, Apr. 21, 2017).
“[Encana] reported 2Q Montney liquids production of 36,000 b/d and noted that production at the time was running at 45,000 b/d. [Encana] is in the process of doubling Montney liquids production for the second consecutive year, with a fourth-quarter] target of 55,000-65,000 b/d. The company believes the early startup of the Tower liquids hub (9,000 b/d net condensate capacity) further derisks the [fourth quarter] liquids target. The Pipestone liquids hub (10,500 b/d) remains on schedule for an early [fourth-quarter] startup, and [Encana] remains confident in its ability to hit the [fourth-quarter] liquids target,” the analysts said.