Encana to Sell Its Jonah Field Operations in Wyoming to an Affiliate of TPG Capital for $1.8 billion

Encana to Sell Its Jonah Field Operations in Wyoming to an Affiliate of TPG 
Capital for $1.8 billion 
CALGARY, ALBERTA -- (Marketwired) -- 03/31/14 --   Encana Corporation
(Encana) (TSX: ECA) (NYSE: ECA) announced today that its wholly-owned
subsidiary, Encana Oil & Gas (USA) Inc., has reached an agreement
with an affiliate of TPG Capital (TPG) to sell certain natural gas
properties in the Jonah field located in Sublette County, Wyoming,
for a purchase price of approximately US$1.8 billion.  
"This transaction is consistent with our strategy," says Doug
Suttles, Encana President & CEO. "With the divestment of Jonah, we
are unlocking value from a mature, high-quality asset and allowing
our teams to focus on our five core growth areas and continue with
execution of our new strategy." 
Encana's Jonah field comprises a total productive area of about
24,000 acres and over 1,500 active wells. Estimated year-end 2013
proved reserves for Jonah totaled approximately 1,493 billion cubic
feet equivalent (Bcfe). The transaction also includes over 100,000
undeveloped acres adjacent to Jonah known as the Normally Pressured
Lance (NPL) area. 
"The Jonah field is a world-class, low-risk resource with long
reserve life and future drilling opportunities that will be a strong
platform to continue to grow a portfolio of cash flow-producing
assets," says Tom Hart, CEO of the new oil and gas platform formed by
TPG to pursue this investment. 
The buyer expects to retain the employees currently working in
connection with the Jonah field and plans to continue investment in
the field and adjacent acreage, which will assist in supporting local
employment in the area. 
"We look forward to working with the talented Encana team that has
made Jonah a successful operation for many years," says Craig
Manaugh, President and COO of the new TPG oil and gas platform. "We
are also pleased to announce that we will be maintaining the Jonah
field office near Pinedale, Wyoming and opening a Denver office as a
result of the transaction." 
This sale of Encana's Jonah assets is subject to satisfaction of
normal closing conditions, as well as regulatory approvals, and is
expected to close in the second quarter of 2014 with an effective
date of December 1, 2013. Evercore and Davis Graham & Stubbs LLP
advised Encana on this transaction. Vinson & Elkins LLP advised TPG
on the transaction. 
Encana's Corporate Guidance will be updated when the company reports
its 2014 first-quarter results. 
Encana Corporation 
Encana Corporation ("Encana") is a leading North American energy
producer that is focused on growing its strong portfolio of diverse
resource plays, held directly and indirectly through its
subsidiaries, 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. 
TPG is a leading global private investment firm founded in 1992 with
over $59 billion of assets under management and offices in San
Francisco, Houston, Fort Worth, Austin, Beijing, Chongqing, Hong
Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris,
Sao Paulo, Shanghai, Singapore and Tokyo. TPG has extensive
experience with global public and private investments executed
through leveraged buyouts, recapitalizations, spinouts, growth
investments, joint ventures and restructurings. TPG's new oil and gas
platform will be led by a board that includes Dan Allen Hughes, Jr.,
President and CEO of the Dan A. Hughes Company and TPG partners
Michael MacDougall and Christopher Ortega, in addition to Mssrs. Hart
and Manaugh. For more information, visit www.tpg.com. 
estimated remaining quantities of oil and natural gas and related
substances anticipated to be recoverable from known accumulations,
from a given date forward, based on: analysis of drilling,
geological, geophysical and engineering data, the use of established
technology, and specified economic conditions, which are generally
accepted as being reasonable. Proved reserves are those reserves
which can be estimated with a high degree of certainty to be
recoverable. It is likely that the actual remaining quantities
recovered will exceed the estimated proved reserves. 
The estimates of various classes of reserves in this news release
represent arithmetic sums of multiple estimates of such classes for
different properties, which statistical principles indicate may be
misleading as to volumes that may actually be recovered. Readers
should give attention to the estimates of individual classes of
reserves and appreciate the differing probabilities of recovery
associated with each class. 
Encana uses the term resource play. Resource play is a term used by
Encana to describe an accumulation of hydrocarbons known to exist
over a large areal expanse and/or thick vertical section, which when
compared to a conventional play, typically has a lower geological
and/or commercial development risk and lower average decline rate.
Initial production and short-term rates are not necessarily
indicative of long-term performance or of ultimate recovery. 
In this news release, certain oil and NGLs volumes have been
converted to cubic feet equivalent (cfe) on the basis of one barrel
(bbl) to six thousand cubic feet (Mcf). Cfe may be misleading,
particularly if used in isolation. A conversion ratio of one bbl to
six Mcf is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent value equivalency
at the well head. Given that the value ratio based on the current
price of oil as compared to natural gas is significantly different
from the energy equivalency of 6:1, utilizing a conversion on a 6:1
basis may be misleading as an indication of value. 
providing Encana 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: achieving the company's focus of developing
its strong portfolio of resource plays producing natural gas, oil and
NGLs; expected long reserve life and anticipated drilling
opportunities; the expected proceeds of the sale of the Jonah
properties; the expected closing date of the transaction and the
expectation that closing conditions will be satisfied and regulatory
approvals will be obtained; and estimated reserves for Jonah. 
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 or receive amounts contemplated under the transaction
agreements (such transactions may include third-party capital
investments, farm-outs or partnerships, which Encana may refer to
from time to time as "partnerships" or "joint ventures" and the funds
received in respect thereof which Encana may refer to from time to
time as "proceeds", "deferred purchase price" and/or "carry capital",
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
cautioned 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. 
Assumptions with respect to forward-looking information regarding
expanding Encana's oil and NGLs production and extraction volumes are
based on existing expansion of natural gas processing facilities in
areas where Encana operates and the continued expansion and
development of oil and NGL production from existing properties within
its asset portfolio. 
Forward-looking information respecting anticipated 2014 cash flow for
Encana is based upon, among other things, achieving average
production for 2014 of between 2.6 Bcf/d and 2.8 Bcf/d of natural gas
and 70,000 bbls/d to 75,000 bbls/d of liquids, commodity prices for
natural gas and liquids based on NYMEX $3.75 per MMBtu and WTI of $95
per bbl, an estimated U.S./Canadian dollar foreign exchange rate of
$0.95 and a weighted average number of outstanding shares for Encana
of approximately 741 million. 
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
Further information on Encana Corporation is available on the
company's website, www.encana.com. 
SOURCE: Encana Corporation 
Investor contact:
Encana Corporation
Brian Dutton
Investor Relations
(403) 645-2285 
Encana Corporation
Patti Posadowski
Investor Relations
(403) 645-2252 
Media contact:
Encana Corporation
Doug Hock
Media Relations
(720) 876-5096 
Encana Corporation
Doug McIntyre
Media Relations
(403) 645-6553
TPG contacts:
Owen Blicksilver Public Relations, Inc.
Kristin Celauro: 732-264-1131 or Kristin@blicksilverpr.com
Lisa Baker: 914-725-5949 or lisa@blicksilverpr.com
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