Canada’s largest natural gas producer Encana Corp said it is selling its North Texas natural gas producing assets to boost its cash flows.
Encana, which operates shale gas assets in Canada and the United States, is targeting net divestitures of $1-$2 billion for 2011.
The company has been looking to sell its non-core midstream and producing assets in the United States and Canada.
In July, Encana had said it expects cash flow and output to grow 5-7 percent this year.
The North Texas assets, which are in the Fort Worth basin in the Barnett shale play, produce about 125 million cubic feet equivalent per day (Mmcfe/d) and include associated processing and pipeline facilities on about 52,000 net acres.
The mid-continent resource play operations will continue to be a main contributor to its long-term growth strategy, said Encana, which has about 7 million net acres of undeveloped land across North America.
The company, one of whose peers is Talisman Energy Inc , expects the North Texas asset sale to be completed in late 2011 or early 2012.
Scotia Waterous (USA) Inc is the adviser for the transaction.
Encana’s shares closed at C$24.89 on Wednesday on the Toronto Stock Exchange.
