Encana Unit To Sell Piceance Natural Gas Assets To Caerus - Quick Facts

(RTTNews) - Encana Corp. (ECA.TO, ECA) announced its unit, Encana Oil & Gas (USA), has reached an agreement to sell its Piceance natural gas assets, located in northwestern Colorado, to Denver-based Caerus Oil and Gas LLC. Total cash consideration to Encana under the transaction is $735 million. Encana's Piceance assets include approximately 550,000 net acres of leasehold and approximately 3,100 operated wells.

Encana said the company will also reduce its midstream commitments by approximately $430 million, on an undiscounted basis, and will market Caerus' production related to the assets.

"This transaction advances our strategy, makes the company more efficient and delivers significant proceeds that we will use to further strengthen our balance sheet," said Doug Suttles, Encana CEO.