TPG to acquire Encana’s Jonah field operations for $1.8 billion
An affiliate of TPG Capital has agreed to acquire certain natural gas properties in Jonah field in Sublette County, Wyo., from Encana Oil & Gas Inc., a wholly owned subsidiary of Encana Corp., for $1.8 billion.
Jonah field encompasses a productive area of 24,000 acres containing more than 1,500 active wells, with yearend 2013 proved reserves totaling 1,493 bcfe. The transaction also includes more than 100,000 undeveloped acres adjacent to Jonah known as the Normally Pressured Lance (NPL) area.
TGP said it expects to retain employees working in connection with Jonah and plans to continue investment in the field and adjacent acreage. The company will maintain the Jonah office near Pinedale, Wyo., and open a Denver office as a result of the transaction.
Doug Suttles, Encana president and chief executive officer, said, “With the divestment of Jonah, we are unlocking value from a mature, high-quality asset and allowing our teams to focus on our five core growth areas and continue with execution of our new strategy.”
Encana in December said it will focus 75% of its planned $2.4-2.5 billion capital for this year on liquids-rich assets in the Montney, Duvernay, DJ basin, San Juan basin, and the Tuscaloosa Marine shale, facilitating a 30% increase in year-over-year liquids production (OGJ Online, Dec. 12, 2013).
The transaction is expected to close in the second quarter.
