Encana’s unit, Encana Oil & Gas, completed the sale of its Haynesville natural gas assets in northern Louisiana, to GEP Haynesville.
Total cash consideration to Encana under the transaction is US$850 million, Encana informed in a statement on Thursday.
GEP Haynesville is joint venture formed by GeoSouthern Haynesville and funds managed by GSO Capital Partners.
In addition, through the transfer of current and future obligations, Encana is reducing its gathering and midstream commitments by US$480 million on an undiscounted basis.
The transaction has an effective date of January 1, 2015, the company said.
The transaction includes 112,000 net acres of leasehold, plus additional fee mineral lands. Collectively, they represent Encana’s total position in northern Louisiana.
Image: Encana