Encana Agrees To Sell DJ Basin Assets To Canada Pension Entity For $900 Mln

(RTTNews) - Encana Corp. (ECA.TO, ECA) Thursday announced that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc. has agreed to sell its Denver Julesburg Basin assets in Colorado to Canada Pension Plan Investment Board entity for around $900 million. The entity's 95 percent is owned by the board and 5 percent by the Broe Group.

DJ Basin acreage comprises of 51,000 net acres with average natural gas production of 52 million cubic feet per day and 14,800 barrels per day of crude oil and natural gas liquids. The transaction is expected to close in the fourth quarter of 2015, with an effective date of April 1, 2015.

Encana expects to have reduced its net debt in 2015 by approximately $3 billion by year-end through sale and divestitures.