Encana to sell Bighorn assets

North American energy firm Encana has agreed to sell its Bighorn assets to oil and gas exploration company Jupiter Resources for approximately $1.8bn.

The sale includes about 360,000 net acres of land and Encana’s working stakes in entire pipelines, facilities and service arrangements.

Total net proved reserves at the end of 2013 were around 1,100 billion cubic feet equivalent (Bcfe), of which around 75% is natural gas.

The transaction, which is subject to regulatory approvals, is anticipated to be completed by the end of the third quarter of the year.

Encana president & CEO Doug Suttles said that the transaction advances the company’s strategy by unlocking value from its portfolio as it focuses on developing core growth plays and extracting additional value from base assets.

"Bighorn is a high-quality asset that has not been receiving significant investment in 2014. Going forward, it should serve as an excellent foundational asset for Jupiter Resources," Suttles added.

Jupiter Resources CEO Simon Bregazzi said: "We are very excited about the opportunity to actively develop the Bighorn assets, one of North America’s premier liquids-rich natural gas projects in an area that has generated some of Canada’s most prolific well results in recent years."

Jupiter Resources is focused on liquids-rich natural gas properties in Western Canada. It is a portfolio investment of funds managed by affiliates of global alternative investment manager Apollo Global Management.

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Image: Encana president and CEO Doug Suttles. Photo: courtesy of Encana Corporation.