Encana Corporation said Friday that its wholly-owned subsidiary, Encana Oil & Gas, completed the previously announced sale of its Haynesville natural gas assets.
The assets, located in northern Louisiana, were sold to GEP Haynesville, a joint venture formed by GeoSouthern Haynesville and funds managed by GSO Capital Partners LP.
Total cash consideration to Encana under the transaction is $850 million, subject to normal closing adjustments.
Additionally, through the transfer of current and future obligations, Encana is reducing its gathering and midstream commitments by $480 million on an undiscounted basis.
The transaction has an effective date of January 1, 2015 and was first announced in August.
The deal includes 112,000 net acres of leasehold, plus additional fee mineral lands.
Collectively, the acres represent Encana’s total position in northern Louisiana.
The Calgary-based company said Thursday that its liquids production jumped 10 percent sequentially in the third quarter and 35 percent year-over-year to 140,400 barrels per day, marking the company’s eighth consecutive quarter of liquids growth.
Encana produced 398,300 barrels of oil equivalent per day in the third quarter, down from 470,000 boepd in the prior-year quarter on lower natural gas production.