Encana Corp. (TSX:ECA) (NYSE:ECA) has received a Production Acceptance Notice at the company's Deep Panuke project offshore Nova Scotia, issued after successful completion of a performance test of the platform. The Deep Panuke project is designed to produce up to 300 million cubic feet per day (MMcf/d) of natural gas from four wells.
Encana has an agreement for the purchase of 100% of the production from the platform. Pricing is tied to the strong US Northeast market, which recorded a 6.5-month price high for the commodity in early December.
The Deep Panuke project produces and processes natural gas from the Deep Panuke field, approximately 250 kilometers (155 miles) southeast of Halifax, Nova Scotia, on the Scotian Shelf. Natural gas from Deep Panuke is processed offshore and transported, via subsea pipeline, to Goldboro, Nova Scotia, where it interconnects with the Maritimes & Northeast Pipeline.