(Adds details, background)
June 27 Encana Corp said it
would sell its Bighorn gas properties in Alberta to Apollo
Global Management LLC for about C$2 billion ($1.9
billion) as it focuses on more-lucrative oil and natural-gas
The sale to Apollo-controlled Jupiter Resources includes
about 360,000 net acres comprising Encana's working interests in
all pipelines and production facilities as well as service
The Bighorn properties produced 319 million cubic feet
equivalent of liquids-rich natural gas per day (after royalties)
in the first quarter, Jupiter said.
Total net proved reserves of the properties at the end of
2013 were about 1,100 billion cubic feet equivalent (Bcfe), with
about three quarters natural gas.
Canada's largest natural gas producer is selling off natural
gas properties while adding oil and NGLs assets to boost its
earnings after years of weak prices for the fuel.
In March, the company sold its properties in Wyoming's Jonah
natural gas field to an arm of private equity firm TPG Capital
for $1.8 billion. The company also sold about 90,000
net acres in east Texas in April for $530 million to an
Shares of the Calgary, Alberta-based company closed at
C$25.58 on the Toronto Stock Exchange on Thursday. They have
gained about 33 percent in the last six months.
($1 = 1.0688 Canadian Dollars)
(Reporting By Narottam Medhora in Bangalore; Editing by
Saumyadeb Chakrabarty and Sriraj Kalluvila)