EnCana Oil &Gas (USA) Inc.

NEW, EnCana Oil & Gas (USA) Inc. has retained Scotia Waterous Inc. to sell all of its interests in certain producing properties, nonproducing acreage and midstream facilities in the Paradox Basin of western Colorado and eastern Utah. The package includes an average 100% operated interest in approximately 306,000 gross acres (273,000 net) in the northern portion of the Paradox Basin. Current net production is 50 million cubic feet of gas per day (90% gas) from approximately 129 gross wells, making the company the largest gas producer in the basin. The producing assets include four major fields, Andy's Mesa, La Sal, Hamilton Creek and Lisbon. The fields produce from multiple stacked sandstone and carbonate reservoirs at depths ranging from 3,000 to 9,500 feet. Upside includes multiple infill drilling opportunities and field optimization. In addition, EnCana has identified 16 exploration opportunities with exposure to approximately 170 billion cubic feet equivalent. It holds the largest nonproducing acreage position in the basin with 255,000 net acres. Net proved reserves are 103 billion cubic feet equivalent (47 billion proved developed producing; 18 billion proved developed nonproducing; 38 billion proved undeveloped). Average operating netbacks January to May were $5.44 per thousand cubic feet. Multi-pay production is from the Leadville limestone, Honaker Trail formation and the Cutler Group. The company also maintains 120 million cubic feet equivalent per day of processing capacity with 47% unutilized capacity to allow for future growth. Assets include more than 260 miles of pipelines. Netherland, Sewell & Associates have completed an independent reserve evaluation for effective Oct. 1. The data room is open. The bid due date is Oct. 8. Contact Adrian Goodisman, 713- 437-5050.