Report: Encana planning to sell Deep Panuke gas project

Encana (ECA +1.8%) is preparing to sell its Deep Panuke offshore gas project in Nova Scotia later this year in a deal that could raise $1B-$2B, Bloomberg reports.

Deep Panuke contributed more than 30% of ECA’s operating cash flow of ~$1.1B in Q1 due to higher spot prices for gas in the U.S. northeast triggered by the harsh winter; it delivered ~253M cf/day of gas in Q1, ~9% of ECA’s total production.

However, ECA has said the project "doesn't really fit" in its portfolio, since it is the company’s only offshore asset and does not produce the oil or higher-value gas liquids ECA is seeking.

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Comments (2)
  • marpy
    , contributor
    Comments (1788) | Send Message
    Based on the big cash cow that Deep Panuke is, the price tag better be 2 billion plus and even at that, the market may not be happy. This is an asset that unless they get top dollar is better kept.


    18 Jul 2014, 02:43 PM Reply Like
  • john001
    , contributor
    Comments (1217) | Send Message
    I doubt that dry, sour gas would command a high price today.
    18 Jul 2014, 04:32 PM Reply Like
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