Centrica subsidiary Direct Energy has entered a deal to purchase natural gas assets in the Carrot Creek region of west central Alberta, Canada, from Encana.
The deal will see Direct Energy gain an additional 6.2 million cubic feet of gas equivalent in production, incremental 25.6 billion cubic feet equivalent of proven plus probable reserves and a 40 MMcfd gas plant with related infrastructure.
In return Encana will receive a property that produces gas and related infrastructure operated by Direct Energy in south-east Alberta and a cash payment of C$58 million (US$56.6 million).
Direct Energy said the deal would give it greater access to the multi-zone, liquids-rich Deep basin gas and Cardium oil fairway in west-central Alberta.
“The development potential of the Carrot Creek assets represents a promising addition to our North American upstream gas business as we seek further opportunities to increase production and reserves," Direct Energy president, Chris Weston, said.
Carrot Creek lies 160 kilometres west of Edmonton and to the north-west of the Cardium oil development in which Direct Energy already holds a stake.
The deal will see Direct Energy gain an additional 6.2 million cubic feet of gas equivalent in production, incremental 25.6 billion cubic feet equivalent of proven plus probable reserves and a 40 MMcfd gas plant with related infrastructure.
In return Encana will receive a property that produces gas and related infrastructure operated by Direct Energy in south-east Alberta and a cash payment of C$58 million (US$56.6 million).
Direct Energy said the deal would give it greater access to the multi-zone, liquids-rich Deep basin gas and Cardium oil fairway in west-central Alberta.
“The development potential of the Carrot Creek assets represents a promising addition to our North American upstream gas business as we seek further opportunities to increase production and reserves," Direct Energy president, Chris Weston, said.
Carrot Creek lies 160 kilometres west of Edmonton and to the north-west of the Cardium oil development in which Direct Energy already holds a stake.