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Encana selling Louisiana assets for $850 million

NEW YORK  — Energy company Encana Corp. is selling its Haynesville natural gas assets in Louisiana in northern Louisiana to GEP Haynesville LLC for $850 million.

The assets being sold include about 112,000 acres. Encana will use the proceeds from the sale to reduce debt.

GEP Haynesville is a joint venture formed by GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP.

Canadian-based Encana also said it will reduce its gathering and midstream commitments, which will be substantially complete through 2020, by about $480 million. It will transport and market GeoSouthern’s Haynesville production on a fee for service basis for the next five years.

The sale of the natural gas assets is expected to close in the fourth quarter, Encana said.

In related news, Canada’s Encana lays off 200 employees in July amid oil slump

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.

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