Encana Announces Filing of Preliminary Prospectus for Initial Public Offering of PrairieSky Royalty

Encana Announces Filing of Preliminary Prospectus for Initial Public Offering 
of PrairieSky Royalty 
FOR: Encana Corporation 
APRIL 14, 2014 
Encana Announces Filing of Preliminary Prospectus for Initial Public Offering
of PrairieSky Royalty 
CALGARY, ALBERTA--(Marketwired - April 14, 2014) -  
Encana Corporation ("Encana") (TSX:ECA)(NYSE:ECA) announced today
that PrairieSky Royalty Ltd. ("PrairieSky"), a wholly-owned
subsidiary of Encana, has filed and obtained a receipt for a preliminary
prospectus in respect of its initial public offering of common shares with the
securities regulatory authorities of all provinces and territories in Canada
(the "Offering"). The Offering is being conducted by way of a
secondary offering by Encana, which will receive the net proceeds of the
Consistent with its strategy announced in November 2013, Encana is establishing
PrairieSky to provide investors with the opportunity to invest directly in a
royalty business, which includes approximately 5.2 million acres of fee simple
mineral title lands in central and southern Alberta with petroleum and/or
natural gas rights. The creation of PrairieSky, from Encana's fee simple
mineral title lands and associated royalty interests that formed part of its
Clearwater business unit, gives Encana the opportunity to unlock value from its
royalty business. 
PrairieSky does not intend to directly conduct operations to explore for,
develop or produce petroleum or natural gas. Instead, the company will focus on
attracting third party capital investment to develop PrairieSky's
properties which is expected to provide PrairieSky with royalty revenues as
petroleum and natural gas are produced from those properties.  
Upon closing of the Offering, Encana is expected to hold a majority interest in
PrairieSky. Although Encana will provide certain day-to-day administrative
services on a transition basis until December 31, 2014, Encana intends to act
only as an investor in, and not as a manager of, PrairieSky. 
The Board of Directors of PrairieSky have been appointed and will be led by
James M. Estey, as Chair, and includes Sherri A. Brillon, Brian G. Shaw,
Sheldon B. Steeves, Bruce G. Waterman and Andrew M. Phillips. The executive
management team of PrairieSky is led by Mr. Phillips, as President & Chief
Executive Officer, and includes L. Geoffrey Barlow, as Vice-President, Finance
& Chief Financial Officer, and Cameron M. Proctor, as Vice-President, Legal
& Corporate Services and Corporate Secretary. 
The Offering is being joint bookrun by TD Securities Inc. and CIBC. Completion
of the Offering is subject to, and conditional upon, the receipt of all
necessary approvals, including regulatory approvals. The Offering is expected
to close in late May to early June, 2014. 
A preliminary prospectus containing important information relating to these
securities has been filed with the securities commissions or similar
authorities in each province and territory of Canada. The preliminary
prospectus is still subject to completion or amendment. Copies of the
preliminary prospectus are available on SEDAR at http://www.sedar.com or from
the underwriters named in the preliminary prospectus. This press release does
not constitute an offer to sell or a solicitation of an offer to buy, nor shall
there be any sale or any acceptance of an offer to buy these securities until a
receipt for the final prospectus has been issued.  
The securities of PrairieSky have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any state securities laws. Accordingly, these securities may not
be offered or sold within the United States unless registered under the U.S.
Securities Act and applicable state securities laws or except pursuant to
exemptions from the registration requirements of the U.S. Securities Act and
applicable state securities laws. This press release does not constitute an
offer to sell or a solicitation of an offer to buy any of PrairieSky's
shares in the United States. 
Encana shareholders and potential investors with information regarding Encana
and PrairieSky, including management's assessment of Encana's and
PrairieSky's 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: the expected future activities of
PrairieSky following closing of the Offering, Encana's expected ownership
level in PrairieSky following closing of the Offering, expectations that
applicable regulatory approvals will be obtained, the success of the Offering,
expected timing of closing of the Offering, and Encana's intention to act
as an investor in, and not as a manager of, PrairieSky. 
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 Encana'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. There can be no assurance that
PrairieSky will ultimately complete the Offering, the size of the retained
interest that Encana would hold initially or in the future in PrairieSky, and
other arrangements that would exist between Encana and PrairieSky. Completion
of the Offering is subject to a number of risks and uncertainties, including
without limitation, those relating to due diligence, favourable market
conditions, stock exchange, regulatory and third party approvals, and approval
by Encana's and PrairieSky's Board of Directors. 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, all of which are subject to the risk
factors identified elsewhere in this news release or in the preliminary
prospectus including assumptions related to receipt of all required regulatory
approvals and completion of the Offering. 
Furthermore, the forward-looking statements contained in this news release are
made as of the date hereof and, except as required by law, Encana and
PrairieSky undertake 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. 
Encana Corporation 
Encana is a leading North American energy producer that is focused on
developing its strong portfolio of resource plays, held directly and indirectly
through its subsidiaries, producing natural gas, oil and natural gas liquids
(NGLs). 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. 
Encana Corporation - Investor contact
Brian Dutton
Advisor, Investor Relations
(403) 645-2285
Encana Corporation
Patti Posadowski
Advisor, Investor Relations
(403) 645-2252
Encana Corporation - Media contact
Jay Averill
Media Relations
(403) 645-4747 
INDUSTRY:  Energy and Utilities - Oil and Gas  
-0- Apr/14/2014 20:56 GMT
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