Encana Corp.’s (TSX: ECA)(NYSE: ECA) wholly owned subsidiary, Encana Oil & Gas (USA) Inc., has completed the 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 $850 million. In addition, 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 Jan. 1.
The transaction includes 112,000 net acres of leasehold, plus additional fee mineral lands. Collectively, they represent Encana's total position in northern Louisiana.