Encana Corp. announced on Monday that its wholly-owned subsidiary, Newfield Exploration Mid-Continent Inc., signed an agreement to sell its natural gas assets in Oklahoma’s Arkoma Basin to an undisclosed buyer.
Encana said the transaction, which is worth $165 million, is subject to ordinary closing conditions, regulatory approvals and other adjustments.
The deal is expected to close in the third quarter of 2019.
Doug Suttles
“Along with our recently announced agreement to exit China, this transaction shows our commitment to realize value from non-core assets. Proceeds from this sale will be directed to our balance sheet,” said Doug Suttles, Encana president and CEO, in a news release.
The Calgary-based company said the Arkoma assets include about 140,000 net acres of leasehold and current production of about 77 million cubic feet equivalent per day (98 per cent natural gas).
CIBC Griffis & Small provided advisory services to Encana for the transaction. Davis, Graham & Stubbs LLP served as Encana’s external legal counsel.
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