EnCana has an industry-leading land position in western Canada of approximately 20.1 million net acres, of which approximately 11.1 million net acres are undeveloped. The mineral rights on approximately one third of this land is acreage owned in fee title by EnCana, which means that production is subject to a mineral tax that is generally less than the Crown royalty imposed on production from land where the government owns the mineral rights.

We are currently focused on exploiting our five natural gas key resource plays located at Greater Sierra and Cutbank Ridge in northeast British Columbia, Bighorn in west central Alberta and CBM (coalbed methane) and Shallow Gas in southern Alberta.

We are also exploiting three crude oil key resource plays at Foster Creek, Christina Lake and Pelican Lake in northeast Alberta. With ConocoPhillips, we have created an integrated, North American heavy oil business consisting of high-quality upstream and downstream assets. The venture is composed of two 50-50 operating entities – one Canadian upstream business and one U.S. downstream business – with each company contributing equally valued assets.

Natural gas sales averaged 2,221 million cubic feet per day (MMcf/d) in 2007.

Crude oil and natural gas liquids sales averaged 120,292 barrels per day (bbls/d) in 2007 reflecting the transfer of 50 percent of Foster Creek and Christina Lake volumes to ConocoPhillips as part of our integrated heavy oil business.