Seeking Alpha

Encana sells Bighorn assets to Jupiter Resources for $1.8B

  • Encana (ECA) agrees to sell its Bighorn assets in the Alberta Deep Basin to Jupiter Resources for ~$1.8B.
  • The sale includes ~360K net acres of land along with ECA's working interests in all pipelines, facilities and service arrangements; total net proved reserves at the end of 2013 were ~1.1B cfe, with 75% of those reserves being natural gas.
  • Jupiter Resources is a portfolio investment of funds managed by affiliates of Apollo Global Management (APO).
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Comments (2)
  • st.andrew
    , contributor
    Comments (19) | Send Message
     
    Some execs aiming in pocketting some change for themselves by selling property,which would offer growth potential ?
    28 Jun 2014, 12:47 AM Reply Like
  • papayamon
    , contributor
    Comments (1186) | Send Message
     
    What it would mean is that ECA has better property they are going to be drilling for quite a while to come. Better to get cash for this asset and put it where they can get a return. Otherwise, it just sits and there are holding costs. This is a good move. They can always buy more property later.
    3 Jul 2014, 02:22 AM Reply Like
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