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The Globe and Mail reported today that Encana Corp. (TSX:ECA) will sell its Bighorn natural gas properties, based in Alberta, to Jupiter Resources for a price of $1.8 billion.
The Globe and Mail reported today that Encana Corp. (TSX:ECA) will sell its Bighorn natural gas properties, based in Alberta, to Jupiter Resources for a price of $1.8 billion. Since last fall, Encana has pursued a new strategy, and has sold various assets and cut 20 percent of its staff, according to the Globe.
As quoted in the publication:
In May, Encana spent US$3.1-billion to enter the oil-rich Eagle Ford shale district in Texas, tilting the company more towards oil. Encana has honed in on core areas: the Montney and Duvernay in Western Canada; the DJ Basin in Colorado; the San Juan Basin in New Mexico and the Tuscaloosa Marine Shale in the southeastern United States. The Eagle Ford becomes a sixth.
Encana CEO, Doug Suttles, said:
This transaction advances our strategy by unlocking value from our portfolio as we focus on developing our core growth plays and extracting additional value from our base assets … Bighorn is a high quality asset that has not been receiving significant investment in 2014. Going forward, it should serve as an excellent foundational asset for Jupiter Resources.