Cenovus Energy Inc. to be North America's newest integrated oil company



    CALGARY, Sept. 30 /CNW/ - Cenovus Energy Inc. has been selected as the
new name for the integrated oil company that EnCana Corporation (TSX, NYSE:  
ECA) is creating as part of its split into two independent energy companies
focused on unconventional resources - an integrated oil company and a
pure-play natural gas company. Under the proposed split, Cenovus will be a
fully integrated North American oil company that has industry-leading in-situ
oilsands properties and top-performing refineries, as well as an underlying
foundation of reliable oil and gas resource plays. The natural gas company
will continue as EnCana Corporation.
    "Cenovus is the newest name in the North American energy business. The
name Cenovus successfully captures the essence of what we want our North
American integrated oil company to be - a strong enterprise with a
sustainable, innovative and bright future," said Brian Ferguson, EnCana's
Chief Financial Officer who is the designated President & Chief Executive
Officer of Cenovus.

    
    Cenovus represents progressive thinking, technical advances and respect
    for the environment in a new century
    

    Cenovus is a newly created word that derives its meaning from its letter
couplings and root origins. Cen represents an innovative way of doing business
in a new century. Novus is taken from the Latin root word meaning new.
Together, they represent the company's commitment to the fresh, progressive
thinking required to be successful in the 21st century - new ideas, new
technologies, and improved approaches to developing energy resources in a
manner that reflects the company's honour and deep-rooted respect for the
environment.
    The Cenovus web domain name will be www.cenovus.com. Work is underway on
a Cenovus logo and brand.

    Corporate reorganization expected to be completed early in 2009

    The proposed corporate reorganization, which is expected to close in
early 2009, would be implemented through a Plan of Arrangement and is subject
to shareholder and court approval. An information circular setting out the
details of the Plan of Arrangement is expected to be mailed to EnCana
shareholders in mid-November, followed by a shareholders' meeting planned for
mid-December. For further information on the announcement see the company's
website, www.encana.com.

    EnCana Corporation

    With an enterprise value of approximately US$60 billion, EnCana is a
leading North American unconventional natural gas and integrated oil company.
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.

    ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of
providing EnCana shareholders and potential investors with information
regarding EnCana and the proposed transaction described above in this news
release, including management's assessment of future plans and operations
relating to the future integrated oil company (Cenovus) and the pure-play
natural gas company (GasCo), EnCana has included in this news release certain
statements and information that are forward-looking statements or information
within the meaning of applicable securities legislation, and which are
collectively referred to herein as "forward-looking statements." The
forward-looking statements in this news release include, but are not limited
to, statements and tables with respect to: the proposed transaction and
expected future attributes of each of GasCo and Cenovus following such
transaction; the anticipated benefits of the transaction; future performance
of Cenovus and GasCo; future production and refinery expansions that will be
undertaken by Cenovus; the expected completion date of the proposed corporate
reorganization of EnCana; and the expected mailing date of the information
circular and the proposed date of the shareholders' meeting relating to the
corporate reorganization.
    Readers are cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the future circumstances,
outcomes or results anticipated in or implied by such forward-looking
statements will occur or that plans, intentions or expectations upon which the
forward-looking statements 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 circumstances, events or outcomes anticipated or implied by
forward-looking statements will not occur, which may cause the actual
performance and financial results in future periods to differ materially from
the performance or results anticipated or implied by any such forward-looking
statements. These risks and uncertainties include, among other things: risks
associated with the ability to obtain any necessary approvals, waivers,
consents, court orders and other requirements necessary or desirable to permit
or facilitate the proposed transaction (including, regulatory and shareholder
approvals); the risk that any applicable conditions of the proposed
transaction may not be satisfied; volatility of and assumptions regarding oil
and gas prices; assumptions contained in or relevant to the company's current
corporate guidance; fluctuations in currency and interest rates; product
supply and demand; market competition; risks inherent in marketing operations
(including credit risks); imprecision of reserves estimates and estimates of
recoverable quantities of oil, bitumen, natural gas and liquids from resource
plays and other sources not currently classified as proved reserves; the
ability to successfully manage and operate the integrated North American
oilsands business with ConocoPhillips; refining and marketing margins;
potential disruption or unexpected technical difficulties in developing new
products and manufacturing processes; potential failure of new products to
achieve acceptance in the market; unexpected cost increases or technical
difficulties in constructing or modifying manufacturing or refining
facilities; unexpected difficulties in manufacturing, transporting or refining
synthetic crude oil; risks associated with technology and the application
thereof to the business of GasCo and Cenovus; the ability to replace and
expand oil and gas reserves; the ability to generate sufficient cash flow from
operations to meet current and future obligations; the ability to access
external sources of debt and equity capital; the timing and the costs of well
and pipeline construction; the ability to secure adequate product
transportation; changes in royalty, tax, environmental and other laws or
regulations or the interpretations of such laws or regulations; applicable
political and economic conditions; the risk of war, hostilities, civil
insurrection, political instability and terrorist threats; risks associated
with existing and potential future lawsuits and regulatory actions; and other
risks and uncertainties described from time to time in the reports and filings
made with securities regulatory authorities by EnCana. 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.
    Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and, except as required
by law, EnCana does not undertake any obligation to update publicly or to
revise any of the included 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.





For further information:

For further information: EnCana Corporation is available on the
company's website, www.encana.com, or by contacting: EnCana Corporate
Communications: Investor contact: Paul Gagne, Vice-President, Investor
Relations, (403) 645-4737; Ryder McRitchie, Manager, Investor Relations, (403)
645-2007; Susan Grey, Manager, Investor Relations, (403) 645-4751; Media
contact: Alan Boras, Manager, Media Relations, (403) 645-4747

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Encana Corporation

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