EnCana (Chad) Holdings Ltd., an indirect wholly-owned subsidiary of EnCana Corporation, has closed an agreement to sell all of its interests in its exploration assets in Chad to CNPC International (Chad) Ltd., an indirect wholly-owned subsidiary of the China National Petroleum Corporation (CNPC) for approximately US$202.5 million, before closing adjustments. Pursuant to the agreement, CNPC purchased all of the shares of EnCana International (Chad) Ltd., which holds a 50 percent working interest in a Convention and Permit H which covers seven sedimentary basins. The effective date of this transaction is October 1, 2006.
Background
EnCana has operated an exploration program in Chad since 2002. In the past five years, the company has drilled 11 exploration wells and has had encouraging results. Divesting of this asset is part of the company's ongoing program to manage and optimize its portfolio of assets and to focus on core North American resource plays.
EnCana has now completed its withdrawal from exploration activities in Africa and continues with limited exploration work in select international locations.
BNP Paribas acted as the exclusive financial advisor with respect to the sale of EnCana's interests in Chad.
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