Effective January 3, 2007, EnCana Corporation and ConocoPhillips entered into an agreement to create an integrated, North American heavy oil business consisting of strong upstream and downstream assets. The venture is comprised of two 50/50 entities - one Canadian upstream business and one U.S. downstream business - with both companies contributing equally valued assets and equity for future capital expenditures. With this transaction, EnCana acquires an immediate equity interest in two quality downstream assets in the United States; the Wood River refinery in Illinois and the Borger refinery in Texas.

Read the January 3, 2007 news release
Read the October 5, 2006 news release
View the October 5, 2006 Roadshow Presentation (PDF: 3M)

Upstream Business
The upstream business consists of EnCana's Foster Creek and Christina Lake in-situ oilsands projects, both located in the prolific eastern flank of the Athabasca oilsands in northeast Alberta. The assets hold independently estimated recoverable bitumen of more than 6.5 billion barrels. The upstream business’goal is to increase bitumen production from approximately 50,000 barrels per day (bbls/d) to 400,000 bbls/d by 2015. The upstream business plans to transport and sell the bitumen, blended with a diluent, at major oil trading hubs in Alberta. EnCana and ConocoPhillips each own 50 percent of the upstream business. EnCana is the operator and manages the upstream business, headquartered in Calgary.

Downstream Business*
The downstream business consists of ConocoPhillips' Wood River and Borger refineries, located in Roxana, Illinois, and Borger, Texas, respectively. The business plans to expand heavy oil processing capacity at these facilities from approximately 60,000 bbls/d to 550,000 bbls/d (30,000 to 275,000 bbls/d of bitumen handling capacity) by 2015. Total throughput at the two facilities is targeted to increase from the current 450,000 to 600,000 bbls/d over the same time period. The downstream business may further expand heavy oil processing capacity at these locations or in Alberta to match bitumen production. EnCana and ConocoPhillips each own 50 percent of the business; however, ConocoPhillips holds a disproportionate economic interest in Borger for two years: 85 percent in 2007 and 65 percent in 2008. The downstream business plans to purchase and transport all feedstocks for the refineries and sell the refined products. ConocoPhillips is the operator and manages the downstream business, headquartered in Houston.

* Downstream business references are to WRB Refining LLC.