Encana has been highly focused and consistently disciplined in building, investing in and driving value from its world class, multi-basin portfolio.
It began in the summer of 2013, when a group of technical specialists and the midstream, marketing and fundamentals teams were asked to identify the highest quality North American basins and plays which offered tremendous scale, margins and returns.
The team pinpointed the “core of the core” in these basins, laying the foundation for the acquisition of high quality positions in the core of the Permian and Eagle Ford. These supplemented Encana’s Montney and the Duvernay positions, creating Encana’s core four assets.
The core four assets currently contain over 20,000 total inventory locations, of which 10,000 are liquids-rich ‘premium’ return inventory that are anticipated to deliver at least a 35 percent after-tax rate of return (with industry standard spacing) at flat prices of $50 WTI and $3 NYMEX.
This total inventory doubled in size during the past couple of years, reflecting Encana’s focus on fast-paced technical innovation, increased subsurface knowledge, and relentless efficiency in all parts of the company.
"Being in the best parts of the best plays means they continue to improve over time," said David Hill, Executive Vice President, Exploration & Business Development.
Encana’s portfolio contains thick, high quality, stacked resource potential. For example, in the Montney and Permian, two of the most active resource plays in Noth America, there are massive stacked resource accumulations that provide leading development opportunities. Encana is the only E&P company to hold large premium acerage positions in both the Permian and the Montney.
Continuous refinement and application of technical innovations, coupled with advancements in subsurface understanding and precision targeting, enables Encana to test new zones and spacing patterns.
This constant testing and data-driven knowledge is rapidly shared across each of Encana’s plays, creating the momentum that grows the company’s well inventory and creates future opportunity.
"We believe there is real value in having a multi-basin, focused portfolio. Having four core positions gives us tremendous advantage when it comes to staying at the cutting edge of technology," said Encana President and CEO Doug Suttles.
Encana’s premium well inventory forms the cornerstone of the company’s five-year growth plan. The company only expects to consume a small fraction of its total premium well inventory locations over the next five years, highlighting the quality and depth of its core assets.
"In our view, our growth potential is second to none, not only among multi-basin players but also pure play competitors," added Suttles at Encana's Investor Day.
Through testing new zones and continued innovation and efficiency, Encana believes there is opportunity to further grow its well inventory.
For example, in the Eagle Ford, two wells in the Austin Chalk delivered an average 90-day initial production rate of 1,800 BOE/d including 1,550 bbls/d of oil. In addition, in the Duverney, two recent wells in the oil window delivered an estimated 30-day initial production rate of 1,500 BOE/d, of which 1,000 bbls/d is being sold as condensate.Legal Advisory