EnCana agrees to sell remaining 3.75 percent of Syncrude for approximately $417 million

CALGARY, Alberta (June 11, 2003) - EnCana Corporation (TSX, NYSE: ECA) has agreed to sell its remaining
3.75 percent interest in the Syncrude project to Canadian Oil Sands Limited (Canadian Oil Sands) for approximately
C$417 million.
In February 2003, EnCana sold an initial 10 percent interest in Syncrude to Canadian Oil Sands for approximately
$1.070 billion. At that time, Canadian Oil Sands acquired an option to purchase, on similar terms and prior to year- end, EnCana's remaining 3.75 percent share and an overriding royalty. That option has now been exercised,
bringing total proceeds from the sale to approximately $1.487 billion. The sale of the 3.75 percent interest is subject
to normal closing adjustments. It has an effective date of February 1, 2003 and is expected to close on or about July
11, 2003.

"This divestiture of Syncrude exemplifies EnCana's focus on premium-growth, high-return assets. Our investments are targeted to high-working-interest, operated, conventional oil and gas properties where we believe we can
efficiently apply our core competencies, manage the pace of development and achieve the lowest costs in industry," said Gwyn Morgan, EnCana's President & Chief Executive Officer.
"Despite our sale of these Syncrude interests, EnCana continues to have an ambitious growth plan for developing our leading position in in-situ oilsands. Our high quality oilsands investments will focus on our 100 percent owned and operated lands at Foster Creek and Christina Lake, where we are applying leading-edge steam-assisted gravity drainage (SAGD). By early in 2004, production is expected to grow to more than 30,000 barrels per day.
Credit Suisse First Boston and RBC Capital Markets served as financial advisors to EnCana on the Syncrude transactions.
EnCana Corporation
EnCana is one of the world's leading independent oil and gas companies with an enterprise value of approximately C$31 billion. EnCana is North America's largest independent natural gas producer and gas storage operator. Ninety percent of the company's assets are in four key North American growth platforms. EnCana is the largest producer
and landholder in Western Canada and is a key player in Canada's emerging offshore East Coast basins. Through its
U.S. subsidiary, EnCana is one of the largest gas explorers and producers in the Rocky Mountain states and has a strong position in the deepwater Gulf of Mexico. The company has two key high potential international growth
platforms: EnCana is the largest private sector oil producer in Ecuador and is the operator of a large oil discovery in
the U.K. central North Sea. The company also conducts high upside potential New Ventures exploration in other parts of the world. EnCana is driven to be the industry's best-in-class benchmark in production cost, per-share
growth and value creation for shareholders. EnCana common shares trade on the Toronto and New York stock
exchanges under the symbol ECA.

 

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ADVISORY - In the interests of providing EnCana shareholders and potential investors with information regarding EnCana, including management's assessment of EnCana's future plans and operations, certain statements contained in this news release are forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements in this news release include, but are not limited to, EnCana's focus on its premium growth, highest return assets, EnCana's performance and returns, targeted growth in conventional production per share, the achievement of forecasted gas and oil sales levels, unit production cost capability and potential production from the Foster Creek and Christina Lake projects, the expected closing date of the sale of EnCana's Syncrude interest, the use of proceeds of such sale and references to potential exploration.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the company's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward- looking statements. These risks and uncertainties include, among other things: volatility of oil and gas prices; fluctuations in currency and interest rates; product supply and demand; market competition; risks inherent in the company's marketing operations; imprecision of reserve estimates; the company's ability to replace and expand oil and gas reserves; its ability to generate sufficient cash flow to meet its current and future obligations; its ability to access external sources of debt and equity capital; the risk that the anticipated synergies to be realized by the merger of AEC and PanCanadian will not be realized; costs relating to the merger of AEC and PanCanadian being higher than anticipated and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by EnCana. Although EnCana believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the forward- looking statements contained in this news release are made as of the date of this news release, and EnCana does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Further information on EnCana Corporation is available on the company's Web site, www.encana.com.

FOR FURTHER INFORMATION:

Investor contact:

Media contact:

EnCana Corporate Development

Sheila McIntosh

Alan Boras

Senior Vice-President, Investor Relations

Manager, Media Relations

(403) 645-2194

(403) 645-4747

Greg Kist

Manager, Investor Relations

(403) 645-4737

ECA stock price

TSX $14.27 Can -0.540

NYSE $11.11 USD -0.510

As of 2017-12-15 16:03. Minimum 15 minute delay