Encana’s new strategy focuses on profitable growth from five high return liquids rich and oil assets.
Texas is a resource play with operations primarily located in East Texas. The focus is on tight gas with multi-zone targets in the Bossier and Cotton Valley zones, as well as shale gas in the Haynesville and Mid-Bossier horizons. In 2012, Encana drilled approximately four net wells in Texas. At December 31, 2012, Encana controlled approximately 119,000 gross undeveloped acres (65,000 net acres).
In December 2011, Encana closed the majority of the sale of its North Texas natural gas producing assets for proceeds of US$836 million. The remainder of the sale closed in March 2012 for proceeds of US$114 million.
Eaglebine is an emerging oil play located in the East Texas Basin, which was recognized as part of Encana’s legacy leasehold in the basin. At December 31, 2012, Encana controlled approximately 89,000 gross undeveloped acres (86,000 net acres). In 2012, Encana drilled approximately eight net horizontal wells, with an average effective length of 6,700 feet.
|Natural Gas (MMcf/d)||Oil & NGLs (Mbbls/d)|
Prior to 2012 production was reported as MMcfe/d which included production for both natural gas as well as oil and natural gas liquids.
1Key resource play areas were realigned in 2011 with 2010 comparative information restated.