Canada’s Encana seeks buyer for Texas Barnett shale gas assets

25 August 2011 15:52  [Source: ICIS news]

HOUSTON (ICIS)--Encana is seeking to divest natural gas assets in the Fort Worth basin, in Texas' Barnett shale gas region, the Canadian natural gas major said on Thursday.

Encana said the assets produce about 125m cubic feet/day (3.5m cubic metres/day) of gas. The divestment includes associated processing and pipeline facilities in the Fort Worth basin, it added.

The planned sale is part of a major divestiture programme as Encana seeks to optimise its portfolio, it said.

Encana has retained investment bank Scotia Waterous for advice on the Texas asset sale, which is expected to be completed in late 2011 or early 2012. It did not say what price it expects to achieve.

Encana added that is also “actively engaged” with potential buyers to sell some midstream assets in the US and Canada that no longer fit with its development plans.

In June, Encana ended talks with PetroChina on a planned $5.5bn (€3.8bn) shale gas joint venture in western Canada after the companies failed to agree on terms.

($1 = €0.69)

By: Stefan Baumgarten
+1 713 525 2653

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