Encana to sell properties in East Texas for about $530M EnCana announced that its wholly-owned subsidiary, Encana Oil & Gas, has reached an agreement with an undisclosed purchaser, to sell certain properties located primarily in Leon and Robertson counties of East Texas for approximately $530M. The combined areas represent about 90,000 net acres and 2013 average production of about 100 million cubic feet per day of natural gas and about 1,200 barrels per day of total liquids. Year-end 2013 total estimated proved reserves of the properties equate to just over 200B cubic feet equivalent compromised of 97% natural gas. This sale is subject to the satisfaction of normal closing conditions and expected to close in Q2 with an effective date of April 1.
Encana volatility increases as oil trends lower and acquisition of Athlon Energy EnCana (ECA) overall volatility of 37 is above its 26-week average of 29 according to Track Data, suggesting large price movement after announcing the acquisition of Athlon Energy (ATHL) for $58.50 per share.