Canada’s Encana to spend $4.5 billion in 2010; plans to double gas output by 2015
17 Mar 2010
North America's largest natural gas producer, Encana Corporation said yesterday that the company will invest an additional $750 million in 2010 to bring up the forecast capital investment to $4.5 billion for the year, targeting a gas production rate of 3.4-3.5 billion cubic feet equivalent (Bcfe) per day.
About $560 million of the additional capital will be spent on Encana's land retention programme in Haynesville shale play of Louisiana and Texas and to begin ramp up of the company's development activity, Encana said in a statement.
Calgary-based Encana is a leading North American natural gas producer that is focused on shale and other unconventional gas developments in key basins from northeast British Columbia in Canada to east Texas and Louisiana in the US, applying advanced technology and innovation to reduce costs and maximise margins. The company reported sales of $11.1 billion in 2009.
The gas major further stated that its huge inventory of natural gas resources is more than adequate to double production in five years.
Speaking to instititutional investors at the company's investor day, Encana's president and chief executive officer Randy Eresman said, ''Technology breakthroughs have unlocked vast new supplies of affordable, clean-burning natural gas - a century of North American supply that will very likely continue to grow as technologies further develop.''
Encana's high quality assets are spread over 12.7 million acres and hold an estimated 23,000 drilling locations.
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