WSJ: Encana Nears Deal To Sell Jonah Natural Gas Fields To Carlyle, NGP

(RTTNews) - Canadian energy producer Encana Corp. (ECA.TO, ECA) is in late stage talks to sell its Jonah natural gas fields in Wyoming to private-equity firms Carlyle Group L.P. (CG) and NGP Energy Capital Management LLC for about $2 billion, according to a Wall Street Journal report on Sunday.

The move to sell the Jonah natural-gas field comes as part of Encana's new CEO Doug Suttles the efforts to divest non-core assets to focus on liquids-rich natural gas and oil that fetch higher prices than dry gas. Suttles was appointed as president and CEO in June 2013.

According to Encana, Jonah is one of the largest natural-gas fields in the U.S. that produced 323 million cubic feet of gas and 4,700 barrels of gas liquids a day after royalties in 2013.

The report states that the acquisition of Jonah natural gas fields by Carlyle and NGP would mark the duo's first since Carlyle bought a 47.5 percent interest in NGP, along with options to boost its stake, in December 2012.

Encana had announced a clear vision and strategy in November 2013 to put Encana on track to be a leading North American resource play company.

As part of the strategy, the company said it will focus its capital investment on five high return oil and liquids-rich resource plays in North America. These are the Montney, Duvernay, DJ Basin, San Juan Basin and Tuscaloosa Marine Shale.

Encana is also looking to spinoff of its Clearwater royalty business in Western Canada through an initial public offering, while retaining a state in it. Clearwater takes in fees and royalties from other companies that operate on a vast tract of its acreage.

ECA closed Friday's regular trading session at $20.23, up $0.17 or 0.85% on a volume of 3.65 million shares. ECA.TO closed on the TSX at C$22.46, up C$0.25 or 1.13% on a volume of 1.42 million shares.