EnCana agrees to sell Brazil offshore exploration concessions for US$165 million

    CALGARY, Sept. 13 /CNW/ - EnCana Corporation (TSX, NYSE:   ECA) has reached
an agreement to sell all of its remaining interests in Brazil for cash
proceeds of approximately US$165 million, before closing adjustments. Under
the agreement, a consortium of two Indian companies based in Mumbai - Videocon
Industries Limited and Bharat PetroResources Limited (a wholly owned
subsidiary of Bharat Petroleum Corporation Limited) - will purchase all of the
shares in EnCana's Brazil subsidiary - EnCana Brasil Petrsleo Limitada.
    "This sale reflects the continuation of our focus on North American
unconventional natural gas and integrated oilsands resources. When added to
our previous 2007 sales of exploration interests in Chad and Canada's
Mackenzie Delta, this Brazil asset sale is expected to take this year's
divestiture proceeds to more than $500 million, our 2007 target," said Randy
Eresman, EnCana's President & Chief Executive Officer.
    With this sale, which is expected to generate an estimated after-tax gain
to net earnings of about $75 million, EnCana is exiting Brazil. In combination
with the company's previous sale of its interest in the Chinook oil discovery
in 2006, total Brazil divestiture proceeds are estimated to be about
$530 million, resulting in an estimated after-tax gain to net earnings of
about $330 million.
    EnCana's Brazil interests in this sale include 10 offshore exploration
blocks, including Espirito Santo, Sergipe-Alagoas, Potiguar and Campos Basin
concessions. The sale has an effective date of January 1, 2007, is subject to
normal closing conditions, regulatory approvals and pre-emptive rights
associated with certain assets. It is expected to close in the first quarter
of 2008. Jefferies Randall & Dewey acted as EnCana's financial advisor for the

    EnCana Corporation

    With an enterprise value of approximately US$50 billion, EnCana is a
leading North American unconventional natural gas and integrated oilsands
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.

providing EnCana shareholders and potential investors with information
regarding EnCana, including management's assessment of EnCana's and its
subsidiaries' future plans and operations, certain statements contained in
this news release are forward-looking statements within the meaning of the
"safe harbour" provisions of the United States Private Securities Litigation
Reform Act of 1995 or "forward-looking information" within the meaning of
applicable Canadian securities legislation. Forward-looking statements or
information in this news release include, but are not limited to: the
company's expected divestiture proceeds for 2007; the estimated after-tax gain
on the sale of the remaining Brazil interests; the estimated total Brazil
divestiture proceeds and estimated after-tax gain thereon; and the expected
timing of closing of the sale of the remaining Brazil interests. Readers are
cautioned not to place undue reliance on forward-looking statements or
information, as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. By their nature,
forward-looking statements or information involve numerous assumptions, known
and unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts, projections and
other forward-looking statements or information will not occur, which may
cause the company's actual performance and financial results in future periods
to differ materially from any estimates or projections of future performance
or results expressed or implied by such forward-looking statements or
information. These risks and uncertainties include, among other things: the
risk that any applicable closing conditions, regulatory approvals and matters
associated with pre-emptive rights will not be met, obtained or waived; the
risk that any party to the transactions fails to complete the transactions as
required, or at all; political conditions and risks in Brazil and other
countries in which the company operates; the risk of war, hostilities, civil
insurrection and instability affecting countries in which the company operates
and terrorist threats; risks associated with existing and potential future
lawsuits and regulatory actions made against the company; 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 or information 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 or information
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 or information contained in this news release are
expressly qualified by this cautionary statement.

For further information:

For further information: Further information on EnCana Corporation is
available on the company's website, www.encana.com, or by contacting: Investor
contact: EnCana Corporate Communications: 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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