Encana Corporation’s wholly owned subsidiary, Newfield Exploration Mid-Continent Inc., closed on its previously announced $165 million sale of its natural gas assets in Oklahoma’s Arkoma Basin. Proceeds from the sale will be used to reduce the Company’s debt.
In making the original announcement in July, the company identified the purchaser only as an “undisclosed buyer.”
Encana’s Arkoma assets included approximately 140,000 net acres of leasehold and production of approximately 77 million cubic feet equivalent per day (98% natural gas). The Company’s full-year proforma production guidance range of 560 – 600 thousand barrels of oil equivalent per day remains unchanged.
“Along with our recently announced agreement to exit China, this transaction shows our commitment to realize value from non-core assets. Proceeds from this sale will be directed to our balance sheet,” said Doug Suttles, Encana President & CEO.
CIBC Griffis & Small provided advisory services to Encana for the transaction. Davis, Graham & Stubbs LLP served as Encana’s external legal counsel.