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Permalink Reply by Skip Peel - Mineral Consultant on November 13, 2015 at 1:46

November 12, 2015 17:00 ET

Encana Completes Sale of Its Haynesville Natural Gas Assets

CALGARY, AB--(Marketwired - November 12, 2015) - Encana Corporation (Encana) (TSX: ECA) (NYSE: ECA) announced today that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., has completed the previously announced sale of its Haynesville natural gas assets, located in northern Louisiana, to GEP Haynesville, LLC (GeoSouthern), a joint venture formed by GeoSouthern Haynesville, LP and funds managed by GSO Capital Partners LP.

Total cash consideration to Encana under the transaction is US$850 million, subject to normal closing adjustments. In addition, through the transfer of current and future obligations, Encana is reducing its gathering and midstream commitments by US$480 million on an undiscounted basis. The transaction has an effective date of January 1, 2015.

The transaction includes 112,000 net acres of leasehold, plus additional fee mineral lands. Collectively, they represent Encana's total position in northern Louisiana.

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Permalink Reply by Skip Peel - Mineral Consultant on November 16, 2015 at 2:49

Vine O&G now has 4 rigs running in Red River Parish.  It's been a long time since Red River saw that much activity.  Hopefully GeoSouthern will also commence a drilling program in the near future.  It appears likely that members in areas of the original ECA/SWEPI operating areas will see more rigs and get new wells in 2016.

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Permalink Reply by Steve P on November 16, 2015 at 10:54

I own minerals in a unit drilled by SWEPI and Encana.  I didn't get royalty checks from Encana the last 2 months, but have continued to receive payments from Vine.   Wondering if  the sale is the basis for Encana not paying me, and wondering if others are in the same situation.

 

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Permalink Reply by Skip Peel - Mineral Consultant on November 16, 2015 at 11:05

I don't know about others but it is common for there to be a delay in royalty payments when a change of operator is underway.

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Permalink Reply by kittycatmama on November 16, 2015 at 12:20

We are leased with EnCana in 2 areas of Desoto and got checks last month.

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Permalink Reply by full name on November 16, 2015 at 12:56

Received check detail from Encana via email today.  Deposit to be made on 20th.  Includes Encana only and Encana/Vine wells in DeSoto, Red River and Sabine.

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Permalink Reply by mickey montana on November 20, 2015 at 6:58

The announcement references "the most prolific area of the Haynesville Shale? Is that Desoto Parrish or a field? Will they be looking for recoveries like the EXCO wells in Section 6, 13n, 12w?

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