Encana to sell its Arkoma Basin natgas assets

Encana has been selling non-core assets to focus on its three core areas: the Montney, Anadarko and Permian basins. Image: Encana

Encana Corporation today announced that its wholly owned subsidiary, Newfield Exploration Mid-Continent Inc., signed an agreement to sell its natural gas assets in Oklahoma’s Arkoma Basin to an undisclosed buyer.

Total cash consideration to Encana under the transaction is $165 million.

The deal is expected to close in the third quarter of 2019.

"Along with our recently announced agreement to exit China, this transaction shows our commitment to realize value from non-core assets. Proceeds from this sale will be directed to our balance sheet," said Doug Suttles, Encana president and CEO.

Encana's Arkoma assets include approximately 140,000 net acres of leasehold and current production of approximately 77 mmcfe/d (98 per cent natural gas).