Encana advances NGLs extraction plans with agreement to capture 12,000 barrels per day from Alberta Deep Basin production

Encana Corporation (TSX, NYSE: ECA) has reached an agreement that will
see Pembina Pipeline Corporation invest about C$230 million to expand
the processing and liquids extraction capacity of the Resthaven natural
gas processing plant in west central Alberta. This plant capacity
increase, the first of a two-phase expansion, is scheduled to come on
stream in late 2013. With this initial expansion, Encana expects to
boost its extraction of natural gas liquids (NGLs) at Resthaven from
about 1,000 barrels per day to about 8,000 barrels per day. The second
expansion is expected to provide Encana with another 4,000 barrels per
day of extracted NGLs from its growing liquids-rich natural gas
production in the region.

'This is the third step in our well-developed plans to capture
additional value from our liquids-rich natural gas production in
Alberta′s Deep Basin. Over the next number of years, we expect our NGLs
extraction to triple from about 10,000 barrels per day to about 30,000
barrels per day following investment by industry-leading third-party
midstream companies at three Alberta Deep Basin plants: Resthaven ?
about 12,000 barrels per day, Musreau ? about 5,000 barrels per day and
Gordondale ? more than 3,000 barrels per day, representing incremental
growth of about 20,000 barrels per day of NGLs. The addition of deep cut
facilities adds significant value to our natural gas production due to
the price uplift that is generated when we extract and sell higher-value
ethane, propane, butane and condensate,? said Renee Zemljak, Encana′s
Executive Vice-President, Marketing, Midstream & Fundamentals.

The first step in Encana′s NGL extraction initiative is set to start up
in December when Encana expects to add about 5,000 ?barrels per day of
NGLs production from expanded facilities that Pembina has installed at
its Musreau natural gas processing plant, located about 30 kilometres
northwest of the Resthaven plant. The second step was taken in late 2010
when Encana agreed to a long-term processing arrangement with a
midstream company to construct a new 120 million cubic feet per day
natural gas processing plant in the Gordondale area, about 100
kilometres northwest of Grande Prairie, Alberta. Encana expects to
extract an additional 3,000 barrels per day to 4,000 barrels per day of
NGLs from the Gordondale plant, which is expected to be in service in
late 2012. Step three is the Resthaven expansion, where Encana has
agreed to a long-term processing arrangement with Pembina. Encana has
also secured capacity on a 44-kilometre pipeline that Pembina plans to
build to transport NGLs extracted at Resthaven to connect with its Peace
Pipeline system for delivery to Edmonton.

Encana reports in U.S. dollars unless otherwise noted. Production, sales
and reserves estimates are reported on an after-royalties basis, unless
otherwise noted.

Encana Corporation

Encana is a leading North American
natural gas producer that is focused on growing its strong portfolio of
natural gas resource plays in key basins from northeast British Columbia
to east Texas and Louisiana. By partnering with employees, community
organizations and other businesses, Encana contributes to the strength
and sustainability of the communities where it operates. Encana common
shares trade on the Toronto and New York stock exchanges under the
symbol ECA.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS ? In the interests
of providing Encana shareholders and potential investors with
information regarding Encana, including management′s assessment of
Encana′s and its subsidiaries′ future plans and operations, certain
statements contained in this news release are forward-looking statements
or information within the meaning of applicable securities legislation,
collectively referred to herein as 'forward-looking statements.?
Forward-looking statements in this news release include, but are not
limited to: expected future capacity and on stream date of the expanded
Resthaven natural gas processing plant; expected increase in NGLs
extraction due to the Resthaven plant proposed expansion; expected
tripling of Encana′s NGLs extraction over the next few years, including
the expected natural gas price uplift resulting from the same; and
expected in service dates of expanded facilities at Musreau and
Gordondale plants. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur. By
their nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties, both general and specific,
that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur, which
may cause the company′s actual performance and financial results in
future periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. These assumptions, risks and uncertainties
include, among other things: the risk that the proposed plants′
expansions may not be completed and within the expected dates; the risk
that the potential benefits of the proposed plants′ expansions will not
be realized; the risk that the company is unable to meet the targets in
its 2011 guidance; the risk that the company may not conclude potential
joint venture arrangements with others; volatility of and assumptions
regarding commodity prices; assumptions based upon the company′s current
guidance; fluctuations in currency and interest rates; product supply
and demand; market competition; risks inherent in the company′s and its
subsidiaries′ marketing operations, including credit risks; imprecision
of reserves and resources estimates and estimates of recoverable
quantities of natural gas and liquids from resource plays and other
sources not currently classified as proved, probable or possible
reserves or economic contingent resources; marketing margins; potential
disruption or unexpected technical difficulties in developing new
facilities; risk that target supply cost for 2011 and in the next few
years will not be met; unexpected cost increases or technical
difficulties in constructing or modifying processing facilities; risks
associated with technology; the company′s ability to replace and expand
gas reserves; its ability to generate sufficient cash flow from
operations to meet its current and future obligations; its ability to
access external sources of debt and equity capital; the timing and the
costs of well and pipeline construction; the company′s ability to secure
adequate product transportation; changes in royalty, tax, environmental,
greenhouse gas, carbon, accounting and other laws or regulations or the
interpretations of such laws or regulations; political and economic
conditions in the countries in which the company operates; terrorist
threats; risks associated with existing and potential future lawsuits
and regulatory actions made against the company; and other risks and
uncertainties described from time to time in the reports and filings
made with securities regulatory authorities by Encana. Although Encana
believes that the expectations represented by such forward-looking
statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Readers are cautioned that the
foregoing list of important factors is not exhaustive. In addition,
assumptions relating to such forward-looking statements generally
include Encana′s current expectations and projections made in light of,
and generally consistent with, its historical experience and its
perception of historical trends, including the conversion of resources
into reserves and production as well as expectations regarding rates of
advancement and innovation, generally consistent with and informed by
its past experience, all of which are subject to the risk factors
identified elsewhere in this news release.

Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and, except as
required by law, Encana does not undertake any obligation to update
publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise. The
forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.

Further information on Encana Corporation is available on the company′s
website, www.encana.com,
or by contacting:

Investor contact:

Ryder McRitchie

Vice-President,
Investor Relations

(403) 645-2007

Lorna Klose

Manager,
Investor Relations

(403) 645-6977

Media contact:

Alan
Boras

Vice-President, Media Relations

(403) 645-4747