Putting the sale into perspectiveSo they sold 10% of their total holdings in the play (the 10% they did not want) for 625 million Canadain. IMO this tells you that theoily part of the play that they kept could be worth as much as 10 billion Canadian.
Montney acreage
As of June 22, 2016, Encana has Montney acreage of ~525,000 net acres, whereas Encana’s sale of Gordondale assets includes acreage of ~54,200 net acres. This means that on pro forma basis, the smaller Encana’s Montney acreage will be ~470,800 net acres, a fall of ~10% as compared to its existing Montney acreage.
Please note that other upstream companies including Murphy Oil (MUR), ConocoPhillips (COP), Canadian Natural Resources (CNQ), and NuVista Energy (NVA.TO) are also active in Montney, Canada. Murphy Oil (MUR) and ConocoPhillips (COP) are part of the S&P 500 (SPY). Encana is the largest producer in Montney.