Working towards advancing its shareholder value, Encana Oil & Gas Inc. – a wholly owned
subsidiary of Encana Corp. – signed a $3.1 billion agreement with Freeport McMoran Oil & Gas
LLC effective April 1st, and will obtain 45, 500 net acres in Karnes, Wilson and Atascosa counties
and part of the Eagle Ford shale in South Texas.
The Canadian Energy Company makes its first major acquisition since 2007 when it bought
another Texan operation for $2.55 billion, though the recent bid will speed up its transition away
from natural gas and towards shale play.
Encana`s bold maneuver, forging a partnership with one of the world’s largest producers of
copper and gold, anticipates a doubling of oil production for the corporation and an increase in
its commodity portfolio, as well as an increase in cash flow by $327 million.
The Eagle Ford is recognized as being among the most high-volume and lucrative resource
plays in North America and the corporation will boast at least four drilling rigs to kick-start 2014.
JUNE 2014
H
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