Encana (NYSE:ECA) rises 1.0% in premarket trading after agreeing to sell its natural gas assets in Oklahoma's Arkoma Basin for ~C$165M (US$126M) in cash and starting its previously announced substantial issuer bid to buy up to US$213M of its common shares.
Sees sale to undisclosed buyer closing in Q3.
Encana's Arkoma assets include ~140,000 net acres of leasehold and current production of ~77M cubic feet equivalent per day (98% natural gas).
Substantial issuer bid is being conducted as a "modified Dutch auction" at US$4.70-US$5.40 per share; offer expires at 5:00 PM ET on Aug. 14, 2019.
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