Deal insight

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

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about Subscriptions

Already have subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

For further information about this report submit the form below.

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

  • Document

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

    PDF 938.43 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
    • Modelling assumptions
    • Precedent transactions
    • Operational efficiency
    • Downspacing
    • Additional potential horizons
    • Liquids price
    • Encana
    • Freeport-McMoRan Copper & Gold
  • 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

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898