Deal insight

Encana makes decisive move into tight oil with US$3.1 bn Eagle Ford deal

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Report summary

Encana is to acquire 45 500 net acres in the core of the Eagle Ford for US$3.1 billion. Freeport McMoRan Copper & Gold (FCX) is the seller. The acreage lies primarily in the Karnes Trough sub play at the core of this leading tight oil play. Current production is 53 000 boe/d (75% oil 11% NGL and 14% gas) and we model a further 300 drilling locations. We value the portfolio at US$3.9 billion (NPV10 discounted to April 2014).

What's included

This report contains

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    Encana makes decisive move into tight oil with US$3.1 bn Eagle Ford deal

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Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 10 images and tables including:

Images

  • Executive summary: Image 1
  • Karnes Trough sub-play wells: average IP30 rates by operator
  • FCX Eagle Ford acreage

Tables

  • Upstream assets: Table 1
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Deal analysis: Table 4

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