Encana is hoping to partake in its third British Columbia shale joint venture.
On Wednesday, an Ecana executive stated that the company is seeking another joint venture partnership. The joint venture would share the costs and risks of drilling more than 800,000 hectares in the Greater Sierra and Horn River areas of northeast B.C.
This would be Encana’s third partnership in the province and CEO Randy Eresman says it is part of the company’s multi-pronged strategy to deal with the current prices of natural gas.
Low gas prices led to a significant decrease in the company’s first-quarter earning. Encana experienced a 95 per cent drop in net income to $78 million, down from $1.49 billion earned during the same quarter, one year ago.
Encana has already signed a similar agreement with PetroChina, worth $5.4 billion for its Cutbank Ridge play, which contains the Montney Shale, as well as a $1.1 billion farm-out deal with Korea Gas. Both of these partnerships are on British Columbian acreage.