Encana renews normal course issuer bid

Encana Corporation (TSX, NYSE: ECA) has received approval for renewal of
the company′s Normal Course Issuer Bid (NCIB) from the Toronto Stock
Exchange (TSX). Under the renewed bid, Encana may purchase for
cancellation up to 36,800,000 of its common shares, representing about 5
percent of the approximately 736,271,664 common shares issued and
outstanding as at November 30, 2010.

Encana plans to fund its share purchases under the renewed bid from
cash, cash flow and the proceeds from potential dispositions. Encana
believes that, depending on the trading price of its shares and other
factors, the purchase and cancellation of some of the company′s common
shares is a worthwhile investment and in the best interests of Encana
and its shareholders.

Encana purchased about 2 percent of outstanding shares in 2010

Under
its current NCIB, which expires on December 13, 2010, Encana purchased
15,396,000 common shares, representing approximately 2 percent of the
company′s outstanding shares on November 30, 2009, at an average price
of approximately US$32.42 per common share.

Purchases of common shares under the company′s renewed NCIB may commence
on December 14, 2010 and may be made until December 13, 2011. Daily
purchases will not exceed 25 percent (being 656,016 common shares) of
the average daily trading volume for the six calendar months prior to
the date of approval of the bid by the TSX, subject to Encana′s ability
to make block purchases through the facilities of the TSX in accordance
with the TSX rules. Encana′s average daily trading volume on the TSX
during the last six calendar months was 2,624,066 common shares.
Purchases will be made on the open market through the facilities of the
TSX in accordance with its policies, and may also be made through the
facilities of the New York Stock Exchange (NYSE) in accordance with its
rules. Approval of the bid is not required from the NYSE. The price to
be paid will be the market price at the time of acquisition.

Encana Corporation

Encana is a leading North American
natural gas producer that is focused on growing its strong portfolio of
prolific shale and other unconventional natural gas developments, called
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, 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: potential
purchases of common shares for cancellation under the normal course
issuer bid, the projected sources of funds which may be used therefor,
including cash, cash flow and proceeds of dispositions and the potential
value of the normal course issuer bid for Encana′s shareholders.

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 conclude
potential joint venture arrangements; 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; 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.

Assumptions relating to forward-looking statements generally include
Encana′s current expectations and projections made by the company in
light of, and generally consistent with, its historical experience and
its perception of historical trends, 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 document.

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:

Encana Corporate Communications

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

Advisor, Media Relations

(403)
645-4799