Encana to Sell Its Interest in Proposed Kitimat Liquefied

Encana to Sell Its Interest in Proposed Kitimat Liquefied Natural Gas
Export Terminal 
CALGARY, ALBERTA -- (Marketwire) -- 12/24/12 -- Encana Corporation
(TSX:ECA) (NYSE:ECA) (Encana) has agreed to sell its 30 percent
interest in the proposed Kitimat liquefied natural gas (LNG) export
terminal project to Chevron Canada Limited (Chevron), subject to
regulatory approvals and post-closing adjustments. Included in the
sale are Encana's 30 percent interest in the associated Pacific Trail
Pipelines as well as approximately 32,500 acres of undeveloped land
in the Horn River Basin of northeastern British Columbia and the
assumption of Encana's take-or-pay processing commitments for the
first phase of the Cabin Gas Plant.  
"This investment by Chevron, a multinational LNG player, represents a
key step in the development of LNG export from Western Canada," says
Randy Eresman, Encana's President & CEO. "Our main goal since we
first acquired an interest in Kitimat LNG almost two years ago was to
help ensure the progression of this project towards its development.
While we are no longer a direct participant in this project, we
continue to support LNG export as vital to diversifying markets for
North American natural gas." 
In March 2011, Encana joined the Kitimat LNG project with partners
Apache Canada Ltd. and EOG Resources Canada Inc., the latter of which
also recently announced that it has agreed to sell its 30 percent
interest in the project.  
The sale of Encana's interest in the proposed Kitimat LNG export
facility is consistent with the company choosing to focus on its core
business. In addition, this transaction reduces Encana's future
capital commitments. The proceeds from this transaction will help to
strengthen the balance sheet and provide further financial
flexibility to fund capital programs and develop key and emerging
resource plays. 
Further details with respect to the terms of the sale are not being
disclosed by the parties. RBC Capital Markets provided financial
advice to Encana, EOG and Apache in regards to the Horn River acreage
aspect of this transaction. 
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 Corporation ("Encana" or the "Company") 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: completion of
the sale of the assets subject of the news release, including the
expected proceeds from the same; expectation for the development of
the Kitimat LNG export project to allow Encana to participate in its
benefits, including being able to provide feedstock to companies with
commitments to the said facility; expectation for LNG facilities in
Canada's west coast and U.S. Gulf Coast to enhance the value of
Encana's assets in addition to any pricing benefits and reduced
differentials created through increased natural gas exports; and
expectation for the sale proceeds of the assets to strengthen the
balance sheet and provide Encana further financial flexibility to
fund capital program and develop its resource plays. 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
and their adverse effect on the Company's operations and financial
condition and the value and amount of its reserves; 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 "partnerships" or "joint ventures",
regardless of the legal form) 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; risk of 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; risk arising from
price basis differential; risk arising from inability to enter into
attractive hedges to protect the Company's capital program; 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 caut
ioned 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.  
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.
Contacts:
Encana Corporation - Investor contact:
Ryder McRitchie
Vice-President, Investor Relations & Communications
(403) 645-2007 
Encana Corporation - Investor contact:
Lorna Klose
Manager, Investor Relations
(403) 645-6977 
Encana Corporation - Media contact:
Jay Averill
Media Relations
(403) 861-2392
 
 
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