EnCana announces intention to divest Green River Basin assets
Does not affect operations in Jonah Field or Sublette County
by EnCana Oil & Gas (USA) Inc. media release
April 6, 2009
EnCana Oil & Gas (USA) Inc. has recently decided to divest the Green River Basin exploration, production and Midstream assets via a public bid sale package. This business decision was part of our Portfolio Management process and was carefully evaluated along with assets in all areas. We know this transaction may take awhile, and want to share the details and keep you informed about our plans.
Although the Green River Basin is a solidly performing asset, keeping it in our portfolio would limit future opportunities for the asset and for EnCana in other areas. We also believe that another company can better develop and realize the value of the Green River Basin, and we will diligently look for such a buyer. We aren’t sure who will bid, but other operators in the basin may be likely candidates.
EnCana's assets in southwest Wyoming are in Sweetwater, Carbon, Uinta and Lincoln counties. We acquired these assets from Tom Brown, Inc. in 2004 and employ nine people in the Rock Springs office and approximately 15 lease operators in the field. Our workforce is drawn from Rock Springs, Green River, Wamsutter and other communities in southwest Wyoming.
The divestiture is a sale of assets owned by EnCana and is not a change in control of EnCana Corporation, so you can expect our operations to run as usual during this process. John Schmidt, operations field leader for the Green River Basin, will continue to manage the operation, and staff will continue to report to John. This is also an opportunity for John to assume added responsibilities for EnCana’s Wind River Basin operations in Riverton. In addition, EnCana will continue our commitment to the Rock Springs community and will maintain our support of many local activities throughout the transaction.
The process may take many months. Because of the current operating environment, characterized by currently low natural gas prices and moderate market conditions, moving the Green River asset from our portfolio to that of another company may take some time in order for EnCana to realize fair value.
We decided this is in the best long-term interest of the Green River asset, staff and EnCana’s USA Division.
Editor’s Note: The company stated they may issue a press release when and if they negotiate an acceptable binding offer. For media related or community relations questions, contact Randy Teeuwen, Community Relations Advisor, at 307-851-8519. According to Teeuwen, this divestiture does not affect EnCana’s operations in the Jonah Field or Sublette County. EnCana (NYSE: ECA) is a natural gas producer based in Calgary, Alberta, Canada. Its U.S. headquarters is in Denver, Colorado. The Company is one of the holders of natural gas and oil resource lands onshore North America. EnCana's other operations include the transportation and marketing of crude oil, natural gas and natural gas liquids, as well as the refining of crude oil and the marketing of refined petroleum products. All of EnCana's proved reserves and production come from onshore North America. During the year ended December 31, 2008, the Company acquired certain land and mineral interests in the Haynesville Shale in Louisiana and Texas. In 2008, EnCana completed the sale of all of its interests in France and withdrew from Qatar. In September 2008, EnCana completed the sale of all its interests in Brazil. The company has an enterprise value of approximately $40 billion. EnCana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.