Encana to sell Jonah field gas properties to TPG Capital
Encana Oil & Gas (USA) has signed an agreement with an affiliate of global private investment firm TPG Capital to sell natural gas properties in the Jonah field for approximately $1.8bn.
Jonah field is located in Sublette county, Wyoming, US. It comprises a total productive area of around 24,000 acres, as well as over 1,500 active wells. The field's estimated year-end 2013 proved reserves totaled around 1,493 billion cubic feet equivalent.
Encana president and CEO Doug Suttles said: "With the divestment of Jonah, we are unlocking value from a mature, high-quality asset and allowing our teams to focus on our five core growth areas and continue with execution of our new strategy."
The transaction also includes over 100,000 undeveloped acres that are located adjacent to Jonah known as the Normally Pressured Lance (NPL) area.
TPG new oil and gas platform CEO Tom Hart said: "The Jonah field is a world-class, low-risk resource with long reserve life and future drilling opportunities that will be a strong platform to continue to grow a portfolio of cash-flow-producing assets."
TPG's affiliate plans to continue investment in the field and adjacent acreage, which will assist in supporting local employment in the area. The transaction is expected to close in the second quarter of this year.
Image: Encana president and CEO Doug Suttles. Photo: copyright © Encana Corporation. All rights reserved.