Encana has agreed to acquire around 45,000 acres of Eagle Ford shale oil acreage from Freeport McMoRan for $3.1 billion, the company said on Wednesday.
Encana CEO Doug Suttles said that the acquisition would accelerate the Canadian company’s transition to higher margin assets.
“With this transaction, combined with our announced divestments of Jonah and properties in East Texas, we’re replacing natural gas production with high-margin oil & liquids production,” Suttles said.
The land being acquired is situated primarily in Karnes county, south Texas.
Though some also falls in Wilson and Atascosa counties.
The land produced around 53,000 bbl of oil equivalent per day in the first quarter of the year, generating around $327 million.