logo
Share SHARE
FONT-SIZE Plus   Neg

Encana, Mitsubishi Partner To Develop Cutbank Ridge Undeveloped Lands

Encana Corp. (ECA,ECA.TO) reached an agreement with Mitsubishi Corp. that would see the Japanese global integrated business enterprise invest nearly C$2.9 billion for a 40 percent interest in the Cutbank Ridge Partnership. The Partnership holds about 409,000 net acres of Encana's undeveloped Montney-formation natural gas lands in the company's Cutbank Ridge resource play in northeast British Columbia. As part of the Cutbank Ridge Partnership, Encana and Mitsubishi intend to create long-term shareholder value by jointly developing production capacity to deliver abundant natural gas to markets for decades ahead.

Pursuant to the deal, Encana would own 60 percent and Mitsubishi would own 40 percent of the Cutbank Ridge Partnership. Mitsubishi would pay C$1.45 billion on closing, which may occur later this month, and Mitsubishi would invest C$1.45 billion in addition to its 40 percent of the Partnership's future capital investment for a commitment period, which is expected to be about five years, thereby reducing Encana's capital funding commitments to 30 percent of the total expected capital investment over that period.

Randy Eresman, Encana's President & Chief Executive, said, Despite an increased capital spending profile on these natural gas assets resulting from this transaction, Encana plans to more than offset the near term impact on North American natural gas production oversupply by capital spending reductions elsewhere in its natural gas portfolio."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Shares of Thomas Cook Group Plc. were losing around 11 percent in the morning trading in London after the British tour operator reported Wednesday weak UK margins in its fiscal 2017, despite higher group profit and revenues. Further, the company lifted its final dividend, and said it is well-positioned to achieve a full year operating result in line with market expectations.. Google plans to de-rank articles from Russian state-owned media sites, Russia Today and Sputnik, following allegations about Kremlin meddling in U.S. electoral processes. Eric Schmidt, the executive chairman of Google's parent company Alphabet, said Google would begin to reduce the presence of Russia Today and Sputnik. Federal Communications Commission Chairman Ajit Pai has announced plans to repeal the net neutrality rules implemented under President Barack Obama. Pai, who was appointed by President Donald Trump, said he circulated his draft order to his fellow FCC commissioners Tuesday morning, with the order...
comments powered by Disqus
Follow RTT