Encana agrees to sell Piceance natural gas midstream assets in Colorado for US$ 590 million

Encana Oil & Gas has agreed to sell a portion of its Piceance natural gas midstream assets in Colorado to a private midstream company for approximately US$ 590 million.

“Following our Fort Lupton gas plant divestiture earlier this year, this Piceance divestiture represents our second successful step in capturing significant unrecognized value from our midstream assets.”

“We have additional divestiture processes underway as we continue to entertain considerable interest from prospective purchasers of our Cabin Gas Plant in Horn River and Cutbank Ridge midstream assets in Canada. We look forward to completing those.” said Renee Zemljak, Encana’s Executive Vice-President Midstream, Marketing & Fundamentals.

These Piceance basin midstream assets, built in the past decade, serve Encana’s Mamm Creek, Orchard and South Parachute production in the area around Rifle, Colorado, about 180 miles west of Denver. They gather and transport about 500 million ft³/d, and include about 260 miles of pipeline and 90,000 horsepower of compression facilities.

“Once we have completed the Piceance midstream asset sale, our 2011 net divestitures will stand at about $600 million. Total divestitures proceeds of about $1 billion are offset by about $400 million of acquisitions.” said Randy Eresman, Encana’s President & Chief Executive Officer.

In addition to these well advanced processes, Encana has previously announced a number of producing property divestitures, including its Barnett Shale play in North Texas, portions of the Jean Marie in northeast British Columbia and its Carrot Creek assets in Alberta's deep basin.

Read the article online at: https://www.worldpipelines.com/business-news/07092011/encana_agrees_to_sell_piceance_natural_gas_midstream_assets_in_colorado_for_590_dollars_million-/