EnCana readies Arctic, African sales

EnCana expects to add “several hundred million dollars” to its war chest either later this year or early in 2007 from the sale of the latest batch of non-core assets it has put on the block — natural gas discoveries and a grab-bag of other assets in northern Canada and oil finds in the central African nation of Chad.

John Brannan, managing director of frontier and international new ventures, said Oct. 25 that a data room should be opened toward the end of December for prospective buyers.

The pick of the Arctic assets is EnCana’s role in the Umiak discoveries, estimated at 200 billion to 300 billion cubic feet, representing an important ancillary source of gas for the Mackenzie Gas Project.

In addition, the package includes two exploration licenses and one significant discovery license in the Mackenzie Delta/Beaufort Sea region, plus various non-operated interests in 14 significant discovery licenses.

Also on the table are interests in 19 significant discovery licenses and one production license in the remote Arctic Islands.

Chad offers some oil discoveries — one rated at 50 million barrels and three of 150 million barrels.

—Gary Park