Foster Creek is the quintessential resource play — a high-quality, unconventional resource with large potential and scalable, repeatable operations that enable the company to incorporate technical advances.

Foster Creek produces from the McMurray formation of the Athabasca oilsands, and features a technology called steam-assisted gravity drainage (SAGD). We conducted a multi-year pilot project prior to starting commercial operations in 2001. In SAGD, horizontal wells are drilled in pairs — running parallel above one another about 17 feet apart. Steam is injected in the upper well to warm the bitumen and make it less viscous so it can drain to the lower production well bore. Foster Creek and Christina Lake combined are expected to produce approximately 34,000 bbls/d in 2008.

A critical SAGD thermal efficiency measure is the ratio between the quantity of steam injected and the quantity of oil produced. Our steam-oil ratio of 2.5 times is industry leading. With a high-quality reservoir and leading thermal efficiency, Foster Creek delivers excellent returns.

In October of 2006, we announced that EnCana entered into an agreement with ConocoPhillips to create an integrated North American heavy oil business. The venture is comprised of two 50/50 operating partnerships, one Canadian upstream partnership and one U.S. downstream partnership, with both companies contributing equally valued assets and equity for future capital requirements. The upstream partnership consists of EnCana's Foster Creek and Christina Lake projects while the downstream partnership consists of ConocoPhillips' Wood River and Borger refineries in the United States. Over the next decade, the partnership plans to grow production at Foster Creek to approximately 210,000 barrels per day (bbls/d) on a gross basis.

Read the January 3, 2007 News Release.

Please read about our Restructuring announced May 11, 2008.
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