CALGARY – Encana Corp. (TSX:ECA) is exiting Louisiana through a proposed deal worth more than US$1.3 billion in cash and savings.
The Calgary-based oil and gas producer will receive US$850 million cash and reduce its commitments by about US$480 million through the sale of its Haynesville natural gas assets in northern Louisiana, under an agreement announced Tuesday.
The buyer is GEP Haynesville LLC (GeoSouthern), a joint venture formed by GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP.
Encana will transport and market GeoSouthern’s Haynesville production on a fee for service basis for the next five years.
It has been sharpening its focus on four strategic areas – two in the southern United States and two in Western Canada.
“This is another step in advancing our strategy,” Encana president and CEO Doug Suttles said in a statement.
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