Calgary-based natural gas producer Encana Corp. said Thursday it is trying to sell its assets in the Barnett shale formation in north Texas as part of a wider plan to raise up to $2 billion US, as it continues to weather a long period of low gas prices.
Encana shares closed down 89 cents, or 3.58 per cent, at 24.00 on the Toronto Stock Exchange.
"Encana continuously looks for opportunities to manage its portfolio of producing assets and improve the long-term value creation capacity of its vast resource portfolio," said Jeff Wojahn, president of Encana's U.S. division.
"These North Texas assets are high-quality, relatively mature producing properties that hold strong potential for future development."
The properties now produce 125 million cubic feet a day of natural gas and include processing facilities and pipelines. Encana wants to close a deal later this year or early in 2012.
An artist's rendering of a planned gas export terminal in Kitimat, B.C. Encana is one of several firms to look at shipping natural gas off the west coast to Asian markets, as gas prices remain stubbornly low in North America. Canadian Press/Encana Corp Encana acquired the assets in 2004, just as new drilling techniques were increasing production from shale. Those advances have produced glut of natural gas in North America, pushing down prices.
Encana is one of several firms to look at shipping natural gas off the West Coast to Asian markets, where the gas can fetch a much better price.
The Calgary firm is also putting up for sale some of its gas processing and producing assets in Canada and the United States that no longer fit with its development plans.
Encana also said Thursday it is in talks with potential partners to invest in undeveloped lands.
In June, Encana called off negotiations with PetroChina to jointly develop properties in northeastern B.C. as the two parties failed to see eye-to-eye on how the assets would operate.
With files from The Canadian Press Accessibility Links
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