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 
FOR: Encana Corporation 
MARCH 31, 2014 
Encana to Sell Its Jonah Field Operations in Wyoming to an Affiliate of TPG
Capital for $1.8 billion 
CALGARY, ALBERTA--(Marketwired - March 31, 2014) - 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
"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
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
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
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
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. 
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
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 statement. 
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 
INDUSTRY:  Energy and Utilities - Oil and Gas  
-0- Mar/31/2014 11:55 GMT
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