EnCana Corporation (“EnCana” or the “Company”) has initiated a process for the divestiture of selected non-core assets and has retained Scotia Waterous Inc. (“Scotia Waterous”) as its exclusive financial advisor to assist in this process.
OVERVIEW
The offering is grouped into six packages (the “Packages”) as outlined on the following map and property descriptions. Comprehensive land schedules will be provided in the data room.
TOTAL OFFERING HIGHLIGHTS
Six packages offering a mixture of operated and non-operated properties with ownership of infrastructure
Extensive 3-D and 2-D seismic coverage over most packages
Development drilling, re-completion and enhanced recovery optimization opportunities
Reserve information from GLJ & McDaniel effective June 1, 2008 will be available in the data room |
Production (1)
January 2008: 4.3 Mboe/day; (82% gas)
758 bbl/day oil/liquids, 21.3 MMcf/day gas
Reserves
Will be available in the confidential data room
Land
85,560 hectares (55,837 net) |
PACKAGE HIGHLIGHTS
Ladyfern Package
- Primarily EnCana operated production from Slave Point, Notikewin and Bluesky zones with upside potential
- Low risk re-completions and infill drilling opportunities identified
- Significant 3rd party gas processing revenue
- 3-D Seismic available for viewing in the physical data room
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- Production (1)
- January 2008: 6.7 MMcf/day; (100% gas)
- Reserves
- Will be available in the confidential data room
- Land
- 35,931 hectares (20,175 net)
|
Leduc Woodbend Package
- 59.89% unit interest in the Leduc Woodbend Glauconitic D Unit No. 1 (Apache operated)
- Increased recovery potential through waterflood optimization
- Simulation sensitivities and model will be provided in the data room
- 3-D Seismic available in the physical data room
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- Production (1)
- February 2008: 896 boe/day; (85% oil)
- 758 bbl/day oil (30°API), 826 Mcf/day gas
- Reserves
- Will be available in the confidential data room
- Land
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Fireweed Package
- Primarily EnCana operated production from the Doig Formation
- Opportunities include tie-in, downspacing and new pool oil development
- Potential for dual zone completions (Gething/Bluesky)
- 100% W.I. in Fireweed gas plant and dehydration facility
- High quality 3-D seismic mapping defines pool
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- Production (1)
- January 2008: 5.4 MMcf/day; (100% gas)
- Reserves
- Will be available in the confidential data room
- Land
- 6,369 hectares (5,680 net)
|
Klua Package
- High impact exploration potential
- Production from the Pine Point Formation
- High impact Keg River prospects
- Jean Marie and Devonian Shale gas potential in the area
- Opportunity to optimize well performance through tubing changes
- Undeveloped land with high working interest
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- Production (1)
- January 2008: 4.5 MMcf/day; (100% gas)
- Reserves
- Will be available in the confidential data room
- Land
- 22,197 hectares (17,978 net)
|
Sneddon Package
- Varying working and over riding interests in lands
- Production primarily from Wabamun zone
- Multi-zone potential (Devonian, Triassic, Jurassic, Cretaceous)
- Numerous drilling locations and behind pipe gas opportunities identified
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- Production (1)
- February 2008: 3.5 MMcf/day (100% gas)
- Reserves
- Will be available in the confidential data room
- Land
- 5,614 hectares (2,261 net)
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Ferrybank Package
- Current production primarily CBM from the Edmonton Group
- Varying interests in lands predominantly to base Belly River
- 38% W.I. in Ferrybank Plant
|
- Production (1)
- February 2008: 387 Mcf/day; (100% gas)
- Reserves
- Will be available in the confidential data room
- Land
- 14,332 hectares (8,818 net)
|
Notes: 1. Production volumes, based on public data, are stated before royalties, are company interest, and are raw volumes unless otherwise noted
RESERVES
GLJ Petroleum Consultants Ltd. (GLJ) and McDaniel & Associates (McDaniel) have completed reserve evaluations for the offering effective June 1, 2008. Reserve data may be viewed with the execution of the Confidentiality Agreement.
TIMETABLE
The timetable for the process is expected to be as follows:
| Milestone |
Date |
Confidential Information |
Week of April 28, 2008 |
Non-binding Proposals Due |
May 28, 2008 |
Further information regarding proposals will be available to parties that have executed the EnCana Confidentiality Agreement.
CONFIDENTIAL INFORMATION
Confidential information is available in the on-line Virtual Data Room, the Physical Data Room and through Q&A facilitated directly with interested parties (collectively, the “Confidential Information”). Parties that would like access to the Confidential Information will be required to execute and deliver two copies of the EnCana Confidentiality Agreement to Scotia Waterous.
CONTACTS
If you have any questions regarding this opportunity, please contact a Scotia Waterous representative listed below:
Scotia Waterous Inc.
Suite 1800 , Scotia Centre, 700 – 2 nd Street SW , Calgary , Alberta T2P 2W1
Main: (403) 265-8077 Fax: (403) 269-8355 E-mail: info@scotiawaterous.com |
Paul Walmsley |
(403) 218-6789 |
Cheryl Sandercock
|
(403) 261-4238
|
Chris Pike
|
(403) 261-2379
|
W. Bruce Alexander
|
(403) 218-6784 |
| Dee Naidoo
|
(403) 261-2375
|
Maureen Jarvis
|
(403) 261-2370
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