CALGARY — Encana Corp. has an agreement to sell its San Juan assets in New Mexico to a Denver-based company for nearly $615 million.
The Calgary-based oil and gas producer’s San Juan assets include lands that produce the equivalent of 5,400 barrels per day of oil.
Denver-based DJR Energy, LLC says the US$480-million acquisition will about double its land in the San Juan Basin to 350,000 net acres (141,639 hectares) and increase its production to more than 6,000 barrels per day.
DJR is an exploration and production company formed in April 2017 with funds from Trilantic Capital Management LP, Waveland Energy Partners and Global Energy Capital.
The sale is expected to close in the fourth quarter of 2018 with an effective date of April 1, 2018.
Companies in this story: (TSX:ECA)
The Canadian Press