Starks natural gas storage facility planned for southwest Louisiana

Lake Charles, Louisiana, (October 1, 2003) - EnCana Gas Storage, North America's largest independent natural gas storage owner and operator, is planning to build a new, high-deliverability gas storage facility in southwest Louisiana.

Starks Gas Storage L.L.C., an indirect, wholly owned subsidiary of EnCana Gas Storage Inc., plans to develop the project by converting existing underground brine caverns into a gas storage facility with connections to a number of nearby, large-diameter gas transmission pipelines. Located approximately 25 miles west of Lake Charles, Louisiana, Starks plans to initially develop 8 billion cubic feet of gas storage capacity with a withdrawal rate of approximately 400 million cubic feet per day.

With the preliminary engineering work complete and property rights secured, Starks is now seeking customers with an interest in booking capacity in the new facility. The project is anticipated to be fully in-service by the third quarter of 2005.

"This new storage project offers customers the benefits of what we believe will be the lowest cost, and fastest in-service, incremental, high-deliverability storage in the Gulf Coast area," said Rick Daniel, President of EnCana Gas Storage Inc. "Starks plans to offer firm service storage with rates that are tailored to customers' business needs."

"The Starks project is particularly attractive because we can quickly and economically convert existing caverns into gas storage, rather than having to start leaching new caverns from scratch. The Starks project offers savings of time and investment - tangible benefits that we plan to pass on to our customers," said Dean Cockshutt, Vice-President, Engineering and Operations at EnCana Gas Storage Inc.

The Starks gas storage location is in an area with strong gas demand for industrial processing and power generation, plus recently-proposed and expanding liquified natural gas import terminals that can benefit from high-deliverability storage. Pipeline connections are being considered on three major transmission lines - Transco pipeline, Tennessee Gas Pipeline and Texas Eastern Pipeline. With several brine caverns on the site, Starks has the potential to expand incrementally as market demand grows. The project, and its tariff, are subject to normal regulatory approvals.

EnCana Gas Storage Inc., a wholly owned indirect subsidiary of EnCana Corporation, has proven experience as a builder, owner, and operator of independent natural gas storage facilities. Its subsidiaries own and operate Wild Goose Storage Inc. in northern California and Salt Plains Storage Inc. in Oklahoma. EnCana Corporation indirectly owns and operates the AECO Hub, a storage complex consisting of three facilities in Alberta.

Prospective customers seeking additional information or wanting to discuss storage opportunities at Starks are asked to contact Bill Hogue at (403) 645-3044 in Calgary, Alberta or Jamie Craddock in Houston, Texas at (713) 320-0561. Additional information is available on EnCana Storage's Web site at www.encanastorage.com.

EnCana Corporation

EnCana is one of the world's leading independent oil and gas companies and North America's largest independent natural gas producer and gas storage operator. It has an enterprise value of approximately C$30 billion. 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. subsidiaries, 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. International subsidiaries operate two key high potential international growth platforms: Ecuador, where it is the largest private sector oil producer, and the U.K. central North Sea, where it is the operator of a large oil discovery. EnCana and its subsidiaries also conduct high upside potential new ventures exploration in other parts of the world. EnCana is driven to be the industry's high performance 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.

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 update 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 update include, but are not limited to the completion of the first phase of the Stark gas storage facility, the timing of the start of operations; injection, withdrawal and storage capacity of such a facility; the potential benefits of such a facility; the potential expansion of such a facility 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 from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; the timing and the costs of well and pipeline construction; the company's ability to secure adequate product transportation; changes in environmental and other regulations; political and economic conditions in the countries in which the company operates, including Ecuador; the risk of international war, hostilities, civil insurrection and instability affecting countries in which the company operates and international terrorist threats; 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 update are made as of the date of this update, 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 update are expressly qualified by this cautionary statement.

Further information on EnCana Corporation is available on the company's Web site, www.encana.com, or by contacting:

Investor contact:
EnCana Corporate Development
Sheila McIntosh
Senior Vice-President, Investor Relations
(403) 645-2194

Greg Kist
Manager, Investor Relations
(403) 645-4737

Media contact:

Alan Boras
Manager, Media Relations
(403) 645-4747

ECA stock price

TSX $14.27 Can 0

NYSE $11.11 USD 0

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