Encana to adopt U.S. GAAP financial reporting in 2012

The Board of Directors of Encana Corporation (TSX, NYSE: ECA) has
approved a plan to adopt U.S. Generally Accepted Accounting Principles
(U.S. GAAP) starting in 2012.

Adopting U.S. GAAP will make it easier for investors to compare Encana′s
financial performance with its peer companies, most of which are based
in the United States. Consistent with current practice, Encana will
report its 2011 year-end financial results in February 2012 in
accordance with International Financial Reporting Standards (IFRS).
Starting in April 2012, Encana will report its first quarter results
using U.S. GAAP.

Historically, Encana has provided reconciliations to U.S. GAAP in its
annual audited consolidated financial statements. Since July 2011,
Encana has published quarterly U.S. GAAP supplemental information
outlining its performance and key financial metrics in comparison to
IFRS for 2011 and 2010. Encana′s U.S. GAAP supplemental information for
the period ended September 30, 2011 is available on the company′s
website. 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: the
anticipated adoption of U.S. GAAP for financial reporting purposes by
April 2012.

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 decide not to
proceed with the adoption of U.S. GAAP in April 2012; 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:

Encana Corporation

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