The board of directors of the Canadian-based corporation unanimously voted in favour of the dividing its operations into a natural gas company, EnCana (GasCo), and integrated oil company, Cenovus Energy.

Plans for the split were originally announced in May 2008 but were put on hold last fall due to an unstable global financial market.

“The strategic rationale for creating two leading energy companies remains as sound as ever – the conversion of one leading unconventional resource company into two independent, premium entities unlocks greater long-term shareholder value from industry-leading North American energy assets,” said president and chief executive officer, Randy Eresman.

The newly-reorganized EnCana (GasCo) will be a pure-play natural gas company focusing on its interests in shale gas plays. Cenovus Energy Inc. will focus on the development of its enhanced oil assets in Canada and the US.

The split is to become official on 30 November.

Source: Upstream

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