Encana to accelerate commercialization of oil and liquids-rich assets through partnership opportunities

Encana Corporation (TSX ?& ?NYSE: ECA) announced today that it is
executing on its plan to leverage the exploration and development of
certain of its oil and liquids-rich assets through partnership
opportunities designed to maximize recognition of the value inherent in
its large asset base. Encana is conducting exploration on several
prospective oil and liquids-rich opportunities and is planning to
develop several new key liquids resource plays from this vast inventory.

'Our recently announced capital budget will direct more than 55 percent
of 2012 upstream capital expenditures toward the exploration,
delineation and development of our oil and liquids-rich opportunities.
Over the past two years, we have increased our prospective oil and
liquids-rich holdings and we plan to develop them using the same
methodology we apply to our natural gas plays ? through a low-cost entry
approach and a firm focus on improving operating efficiencies and
lowering our cost structures,? said Randy Eresman, Encana′s President &
Chief Executive Officer.

'We continuously look for opportunities to manage our asset portfolio
and enhance the long-term value creation of those assets. Accelerating
the rate of development on our oil and liquids-rich land holdings can be
achieved by leveraging third-party capital which shortens our
development timelines, reduces our cost structures and allows us to
realize the value we have captured in these opportunities at an earlier
stage. At the same time, we continue to believe in the long-term future
of natural gas and are investigating the potential for additional
long-term partnerships targeting the future development of portions of
our natural gas lands,? said Eresman.

Oil and liquids-rich opportunities on both sides of the border

In
the USA Division, Encana has amassed a substantial land position in some
of North America′s most promising oil and liquids-rich plays including
the Tuscaloosa Marine Shale straddling the Mississippi and Louisiana
border; the Utica/Collingwood formations in Michigan; the Eaglebine play
in East Texas; and the Mississippian Lime in Oklahoma and Kansas. The
company is seeking partnerships to accelerate the commercialization of
approximately 1.2 million net acres within these areas. In the Canadian
Division, Encana also plans to market partnership opportunities covering
approximately 375,000 net acres in the Alberta Duvernay.

'At this point, it is premature to speculate on the size or value of any
potential transaction. We are marketing an interest in these assets in
which Encana would continue to operate and retain majority ownership,?
said Eresman.

Encana Corporation

Encana is a leading North American energy
producer that is focused on growing its strong portfolio of diverse
resource plays producing natural gas, oil and natural gas liquids. 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: acceleration of the commercialization of oil and
liquids-rich assets through partnership opportunities in various areas
in the USA and Canadian Divisions, expectation to develop several new
key liquids resource plays from vast land inventory, expected capital
expenditures in 2012 to be directed toward the exploration, delineation
and development of oil and liquids-rich opportunities, long-term
expectation on the future of natural gas, expectation to leverage
third-party capital to shorten development timelines, reduce cost
structures, and realize value captured in the company′s oil and
liquid-rich opportunities at an earlier stage, ability to attract
partners for future development on portions of natural gas lands, and
expectation for the company to continue to operate and retain majority
ownership on the foregoing assets.

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: volatility of, and assumptions regarding
natural gas and liquids prices, including substantial or extended
decline of the same; assumptions based upon the company′s current
guidance; fluctuations in currency and interest rates; risk that the
company may not conclude divestitures of certain assets or other
transactions (including third-party capital investments, farm-outs or
partnerships, which Encana may refer to from time to time as 'joint
ventures?) as a result of various conditions not being met; product
supply and demand; market competition; risks inherent in the company′s
and its subsidiaries′ marketing operations, including credit risks;
imprecision of reserves 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, including future net revenue
estimates; marketing margins; potential disruption or unexpected
technical difficulties in developing new facilities; unexpected cost
increases or technical difficulties in constructing or modifying
processing facilities; risks associated with technology; the company′s
ability to acquire or find additional reserves; hedging activities
resulting in realized and unrealized losses; business interruption and
casualty losses; risk of the company not operating all of its properties
and assets; counterparty risk; downgrade in credit rating and its
adverse effects; liability for indemnification obligations to third
parties; variability of dividends to be paid; 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.

Assumptions with respect to forward-looking information regarding
expanding Encana′s oil and NGLs production and extraction volumes are
based on existing expansion of natural gas processing facilities in
areas where Encana operates and the continued expansion and development
of oil and NGL production from existing properties within its asset
portfolio.

Furthermore, the forward-looking statements contained in this news
release are made as of the date hereof and, except as required by law,
Encana undertakes no obligation to update publicly or revise any
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:

Encana Corporation

Investor contact:

Ryder
McRitchie

Vice-President, Investor Relations

(403) 645-2007

Lorna
Klose

Manager, Investor Relations

(403) 645-6977

Media
contact:

Carol Howes

Manager, Media Relations

(403)
645-4799