Encana closes sale of about US$1.1 billion in divestitures

Encana Oil & Gas (USA) Inc., a subsidiary of Encana Corporation
(TSX ?& ?NYSE: ECA), has closed the sale of the majority of its
divestiture of North Texas natural gas producing properties and has
received proceeds of approximately US$860 million for those assets. The
receipt of the remaining proceeds is subject to completion of additional
closing conditions that Encana expects to complete in the first quarter
of 2012. On November 3, 2011, Encana announced its agreement to sell its
North Texas natural gas producing properties for approximately $975
million. Encana Corporation also recently closed the sale of its
interest in the Cabin Gas Plant, which it agreed to sell for about $215
million. To date, these divestiture closings have generated proceeds of
approximately $1.1 billion and these two sales are part of Encana's
previously announced divestitures that are expected to generate about
$3.5 billion in proceeds. Encana reports in U.S. dollars unless
otherwise noted.

Encana Corporation

Encana is a leading North American
natural gas producer that is focused on growing its strong portfolio of
resource plays producing natural gas and natural gas liquids 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, Encana has included in this news release
certain statements and information that are forward-looking statements
or information within the meaning of applicable securities legislation,
and which are collectively referred to herein as 'forward-looking
statements?. The forward-looking statements in this news release
include, but are not limited to, statements with respect to: expected
date of receipt and amount of the remaining proceeds from the sale of
the North Texas natural gas producing properties.

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 company may not receive
the remaining amount of proceeds of the sale of the North Texas natural
gas producing properties on the anticipated date; 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.

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

Carol Howes

Manager, Media Relations

(403)
645-4799