By Energeticcity.ca staff
A Korean gas company will work alongside EnCana Corporation in the Horn River Basin near Fort Nelson.
Korean Gas Corp. will spend $1.1 billion U-S over five years, to acquire a 50% interest in three pieces of land currently owned by EnCana. The deal is commonly referred to as a "farm-in".
The Calgary Herald spoke to EnCana spokesperson Alan Boras, who says the deal represents about 15 per cent of the company’s land position in the Horn River Basin.
The Herald reports the publically-owned Korean Gas Corp. will acquire only sparsely-drilled areas away from the core areas of EnCana’s production.
EnCana has almost half a million hectares of Horn River and Montney land.
The Calgary Herald reports that the agreements cover 10,000 hectares of Horn River lands and an additional 52,000 hectares of prospective Montney land. About $565 million over three years will go directly to exploration activity, Boras added.
EnCana will be entitled to half of any production, which is expected to begin in 2017.
For the Calgary Herald’s full story, click here.