Encana sells Colorado-based natural gas assets

Encana Oil & Gas, a subsidiary of Encana Corp., plans to sell its Piceance natural gas assets, located in northwestern Colorado, to Denver-based Caerus Oil and Gas LLC, according to Encana.

Encana sold its Piceance assets to Caerus for $735 million. Its Piceance assets include about 550,000 net acres of leasehold and about 3,100 operated wells, which produced an average of 240 million cu. ft. per day of natural gas and 2,178 barrels per day of liquids through the first quarter of 2017. Additionally, reserves were at about 814 billion cu. ft. equivalent at the end of 2016, Encana adds.

“This transaction advances our strategy, makes the company more efficient and delivers significant proceeds that we will use to further strengthen our balance sheet,” says Doug Suttles, president and CEO of Encana. “I’d like to congratulate Caerus on acquiring a high-quality natural gas asset along with a talented team.”