Encana sold the majority of its Clearwater assets in southern and central Alberta to Calgary-based Ember Resources for $540 million Wednesday.
The sale includes about 1.2 million net acres of land and over 6,800 producing wells with second quarter average production of 180 million cubic feet equivalent per day of natural gas.
The deal is part of Encana’s larger divestment strategy meant to focus the company’s efforts on liquid rich areas.
Calgary-based Encana will retain about 1.1 million net acres in Clearwater, including around 480,000 net acres along the eastern edge of the Horseshoe Canyon Fairway.
This sale is expected to close in the first quarter of 2015.
“This divestiture continues to advance our strategy. We are unlocking additional value from non-core dry gas assets as we focus on liquids rich growth areas,” Encana president and CEO Doug Suttles said.