Encana sells Haynesville natural gas assets

Encana Corporation announced that its subsidiary, Encana Oil & Gas (USA) Inc., has completed the previously announced sale of its Haynesville natural gas assets, located in northern Louisiana, to GEP Haynesville, LLC (GeoSouthern), a joint venture formed by GeoSouthern Haynesville, LP and funds managed by GSO Capital Partners LP.

Total cash consideration to Encana under the transaction is US$850 million, subject to normal closing adjustments. In addition, through the transfer of current and future obligations, Encana is reducing its gathering and midstream commitments by US$480 million on an undiscounted basis. The transaction has an effective date of January 1, 2015.

The transaction includes 112,000 net acres of leasehold, plus additional fee mineral lands. Collectively, they represent Encana’s total position in northern Louisiana.