Canada’s largest natural gas producer, Encana Corp., has decided to limit its involvement in low-profit natural gas exploration by selling about 90,000 net acres in east Texas for about $530-million to an undisclosed buyer.
Encana is currently focusing on five plays in the US and Canada with reserves in oil and natural gas liquids, which are more profitable than dry natural gas. The price of natural gas has plummeted in the United States thanks to the boom in shale gas exploration.
The sale includes areas primarily in Leon and Robertson counties with average production of about 100 million cubic feet per day (MMcf/d) of natural gas and about 1,200 barrels per day (bpd) of total liquids in 2013.
Estimated proved reserves of the properties were a little over 200 billion cubic feet equivalent (Bcfe), comprising 97 per cent of natural gas, at the end of last year.
In March, the company also agreed to sell its properties in Wyoming’s Jonah natural gas field to private equity firm TPG Capital for $1.8-billion.
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