2009-08-19-2007-10-01-2007-10-01

Bought co., gaining 10 offshore exploration blocks, including Espirito Santo, Sergipe-Alagoas, Potiguar and Campos Basin concessions.

Calgary-based EnCana Corp. (Toronto, NYSE: ECA) plans to sell all of its remaining interests in its Brazilian subsidiary, EnCana Brasil Petroleo Ltda., to two companies based in Mumbai, India, Videocon Industries Ltd. and Bharat PetroResources Ltd. (a wholly owned subsidiary of Bharat Petroleum Corp. Ltd.), for approximately US$165 million in cash. Under the agreement, the two Indian companies will purchase all of the shares of EnCana Brasil Petroleo. Assets include 10 offshore exploration blocks, including Espirito Santo, Sergipe-Alagoas, Potiguar and Campos Basin concessions. EnCana is exiting Brazil with this sale, which is expected to generate an estimated after-tax gain to net earnings of about US$75 million. In combination with the sale of its interest in the Chinook oil discovery in 2006, total Brazil divestiture proceeds are estimated to be about US$530 million, resulting in an estimated after-tax gain to net earnings of about US$330 million. EnCana president and chief executive Randy Eresman says, "This sale reflects the continuation of our focus on North American unconventional natural gas and integrated oil-sands resources." When added to EnCana's 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 US$500 million, which is the company's 2007 target. The deal is expected to close in the first quarter of 2008. Jefferies Randall & Dewey was EnCana's financial advisor for the sale.