UPDATE 1-Encana to sell some Texas gas assets for $530 mln

Tue Apr 29, 2014 8:45am EDT

(Adds details, background)

April 29 (Reuters) - Encana Corp , Canada's largest natural gas producer, said it had agreed to sell about 90,000 net acres in east Texas for about $530 million to an undisclosed buyer, as part of a plan to cut its dependence on low-value natural gas.

Chief Executive Doug Suttles has been selling assets to reduce exposure to natural gas, which has become cheaper after a U.S. shale boom.

Encana, which is focusing on five shale fields in the United States and Canada with reserves high in oil and valuable natural-gas liquids, agreed in March to sell its properties in Wyoming's Jonah natural gas field to private equity firm TPG Capital for $1.8 billion.

The sale announced on Tuesday 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 percent of natural gas, at the end of last year.

The sale is expected to close in the quarter ending June. (Reporting by Ashutosh Pandey in Bangalore; Editing by Don Sebastian)

FILED UNDER: