NW Natural and Encana to Develop Gas Reserves in US

NW Natural will invest in a joint venture to develop gas reserves from the Jonah Field in Wyoming, US, under a 30-year agreement with Encana Oil and Gas.

NW Natural will pay $250m for a five-year period, with $45m-$55m a year to cover the expected drilling costs in exchange for working interests in certain sections of the Jonah Field.

The firm expects to produce 8%-10% of the total volume of gas in the first ten years of joint venture.

According to the firm, Jonah’s two trillion cubic feet of proven gas reserves will save more than $50m on a net present value basis over the life of the agreement for its customers in the state of Oregon.