Possible Encana-CNPC joint venture to be 'more extensive,' details set for Q4
A possible joint-venture between Encana Corp. and CNPC may end up being "more extensive" than the three northeastern British Columbia regions included in a nascent deal last month, the natural gas firm's chief executive said Thursday.
The MOU to discuss a potential team-up is expected to include the gas-rich Horn River, Greater Sierra and Cutbank Ridge areas where Encana has a hefty footprint. "The contemplation of the joint venture could be more extensive than that, and we're at that stage of negotiation now," Randy Eresman told an investment conference in New York Thursday. "It will take a few months before we come to a common understanding."
The Calgary-based firm has indicated previously it aims to rake in between $1 billion and $2 billion per year of joint-venture capital in order to speed up development of its vast land base. Over the past three years, Encana has attracted more than $4 billion in third-party capital.
In March, Encana signed an agreement with Korea Gas Corp. that saw the Asian company buy a 50 per cent stake in properties in the promising Horn River Basin and Montney shale gas plays in northeastern B.C.