Encana To Sell Jonah Field Assets In Wyoming For $1.8 Bln

(RTTNews) - Canadian energy producer Encana Corp.'s (ECA.TO, ECA) unit, Encana Oil & Gas (USA) Inc., has inked an agreement with an affiliate of TPG Capital to sell certain natural gas properties in the Jonah field in Sublette County, Wyoming, for around $1.8 billion. Encana's Jonah field consists of a total productive area of around 24,000 acres and more than 1,500 active wells.

Estimated year-end 2013 proved reserves for Jonah stood at about 1,493 billion cubic feet equivalent or Bcfe. Also, the transaction includes over 100,000 undeveloped acres adjacent to Jonah known as the Normally Pressured Lance or NPL area.

The buyer hopes to retain the employees currently working in relation with the Jonah field and expects to continue investment in the field and adjacent acreage, that would assist in supporting local employment in the area.

This sale of Encana's Jonah assets is likely to close in the second quarter of 2014 with an effective date of December 1, 2013. Evercore and Davis Graham & Stubbs LLP advised Encana on this transaction. Vinson & Elkins LLP advised TPG on the transaction.