Encana closes C$920 million sale of Cutbank Ridge midstream assets

09.02.2012  |  Business Wire

Encana Corporation (TSX ?& ?NYSE: ECA) has closed the sale of its natural
gas processing assets in the Cutbank Ridge area for an aggregate
purchase price of approximately C$920 ?million, subject to customary
adjustments. On December, 7, 2011, Encana announced its agreement to
sell the midstream assets to Veresen Inc. (TSX: VSN). The sale includes
Encana′s 100 percent interest in the Steeprock plant in northeast
British Columbia and the Hythe plant in northwest Alberta, which
combined provide about 516 million cubic feet per day of natural gas
processing capacity, as well as compression and 370 kilometres of
associated gathering pipelines. The Steeprock plant is located
approximately 50 kilometres south of Dawson Creek and about
10 ?kilometres west of the Hythe plant. As part of Encana′s midstream
divestiture, Encana has entered into a competitive, long-term gathering
and processing fee agreement with the new owner on terms that provide
cost stability for Encana′s ongoing natural gas development in Cutbank
Ridge and will help Encana efficiently deliver its production to market.

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.

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