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Encana strikes new partnership with Mitsubishi on undeveloped Montney land

Encana strikes new partnership with Mitsubishi on undeveloped Montney land

Report summary

In one of the largest Montney transactions to date, Mitsubishi has acquired a 40% stake in 409,000 net acres of Encana's northeast British Columbia lands for Cdn$2.9 billion. Mitsubishi will pay Cdn$1.45 billion up front and invest the same amount again over the coming five years. Adding to its position in the Cordova Embayment, the deal cements Mitsubishi as a serious player in the Canadian unconventional gas space and adds further weight to its LNG export ambitions. For Encana, ...

What's included?

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  • Encana strikes new partnership with Mitsubishi on undeveloped Montney land PDF - 896.41 KB 8 Pages, 6 Tables, 2 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

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  • Executive summary
  • Transaction details
  • Upstream assets
    • Cutbank Ridge - Encana's Montney heartland
    • The Cadomin and Doig alternative
    • Five-year development plan
    • Massive resource potential
  • Deal analysis
    • An attractive deal, provided the upside potential can be realised
    • Compares well to previous Montney deals
    • Sensitive to liquids content
    • The LNG option
      • LNG export economics prove very attractive
  • Upsides and risks
    • Upsides
    • Risks
  • Strategic rationale
    • Encana
    • Mitsubishi
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
    • Outline of the Cutbank Ridge Partnership lands
  • Deal analysis
    • Deal analysis: Table 1
    • Wood Mackenzie base case valuation sensitivity to liquids content
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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