Encana's wholly owned subsidiary, Encana Oil & Gas (USA) Inc., has completed the previously announced acquisition of 45,500 net acres located in Karnes, Wilson, and Atascosa counties of south Texas from Freeport-McMoRan.
Situated in the core of the prolific Eagle Ford shale play, the acreage produced 53,000 barrels of oil equivalent per day (boe/d) in the first quarter of 2014 and has an estimated drilling inventory of more than 400 locations. The deal, which Encana anticipates will be accretive to 2014 cash flow, doubles the company's current oil production and significantly enhances its continuing efforts to reposition to a more balanced commodity portfolio. This transaction has an effective date of April 1.
Encana Oil & Gas (USA) Inc. has also closed on the majority of the previously announced sale of certain properties located primarily in Leon and Robertson counties of East Texas, having received $427 million of the total anticipated purchase price of $530 million. The company expects to close the balance of the transaction in the third quarter of 2014.