Encana Corp. (NYSE: ECA, TO: ECA.TO) wrapped up its recent string of acquisition and divestiture activity by completing the sale of Jonah Field operations in Wyoming for $1.8 billion.
The Calgary-based company said May 12 that it closed the sale of certain natural gas properties in the Jonah Field located in Sublette County, Wyo. to Jonah Energy LLC, an affiliate of TPG Capital.
This is the first acquisition by Denver-based Jonah Energy, which was formed by TPG to acquire and operate North American onshore oil and gas properties.
The properties acquired by Jonah Energy comprise a total productive area of about 24,000 acres and more than 1,500 active wells in the Jonah Field. Additionally, Jonah Energy gained 100,000 undeveloped acres adjacent to the field known as the Normally Pressured Lance (NPL) area. Year-end 2013 proved reserves totaled 1.5 trillion cubic feet equivalent (Tcfe) with first-quarter 2014 net production of 311 MMcfe/d.
Jonah Energy plans to retain the employees currently working in connection with the Jonah Field and also plans to continue investment in the field and adjacent acreage.
Evercore Partners Inc. (NYSE: EVR) and Davis Graham & Stubbs LLP advised Encana on this transaction. Vinson & Elkins LLP advised TPG on the transaction.
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