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Canceled JV to develop gas assets at Cutbank Ridge area in BC.

Encana Corp., Houston, (NYSE: ECA) and PetroChina International Investment Co., a subsidiary of PetroChina Co. Ltd., Shanghai, (NYSE: PTR) have ended negotiations for a proposed joint venture concerning Encana's Cutbank Ridge business assets after the parties were unable to achieve substantial alignment with respect to key elements of the proposed transaction, including the joint operating agreement.

"After close to a year of exclusive negotiations with PetroChina, we were unable to reach alignment on the planned transaction," says Randy Eresman, president and CEO of Encana. "The disciplined and determined process we undertook on this one initiative in our multi-faceted and ongoing joint-venture strategy has gone a long way to demonstrate the tremendous value that we have created at Cutbank Ridge and it validates our plans to accelerate recognition of that value. As such, we have determined that the best way for us to advance our plans to unlock value from our Cutbank Ridge business assets is to offer up a variety of joint venture opportunities for portions of the undeveloped resources, and, separately, to examine a transaction with respect to our midstream pipeline and processing assets in the area."

Encana has retained RBC Capital Markets and Jefferies & Co. Inc. to seek joint venture opportunities.

In April, Encana announced plans seeking investors in two joint ventures on Encana assets outside Cutbank Ridge in northeastern British Columbia, one on undeveloped Horn River shale lands and one in the company's Greater Sierra resource play.