somebody likes shallow Alberta Nat GasToyota Tsusho invests C$600 million in Encana's coalbed methane development in southern Alberta --------------
Japanese company acquires 32.5 percent royalty interest in natural gas production from Encana fee lands -----------------
CALGARY, Alberta--(BUSINESS WIRE)-- Encana Corporation (TSX, NYSE: ECA) has reached an agreement with Toyota Tsusho Wheatland Inc., a subsidiary of Toyota Tsusho Corporation, that will see the Japanese company invest approximately C$602 million to acquire a 32.5 percent royalty interest in natural gas production from a portion of Encana's coalbed methane (CBM) resource play. The agreement includes production from a total of about 5,500 existing wells and potential future drilling locations in southern Alberta. ----------------
"This investment from a global partner recognizes the significant value identified in Encana's CBM lands which rank among the company's lowest-cost, lowest-risk assets, and signifies another step as Encana pursues a range of opportunities to manage its portfolio and enhance the long-term value creation of its vast inventory. Encana's CBM resources cover a great expanse that includes approximately 2.1 million net acres in the Horseshoe Canyon fairway. The vast majority of this acreage is fee lands, where Encana holds the mineral rights in perpetuity, and are estimated to contain significant amounts of recoverable natural gas. This relationship with Toyota Tsusho, a world-class leader, offers strong synergies that have the potential to foster expanded business opportunities. Further, this agreement serves as a model for other investment opportunities and supplies capital investment to preserve the value and efficient development of Encana's shallow gas lands in Alberta that have contributed long-life production for more than five decades," said Randy Eresman, Encana's President & Chief Executive Officer. -----------------
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