The proposed corporate reorganization would be implemented through a court-approved plan of arrangement. This transaction will create a publicly traded integrated oil company with oilsands as the growth driver. This company, which has a working name of IntegratedOilCo (IOCo), will focus on the development of EnCana’s Canadian oilsands assets and refinery interests in the US, underpinned by a natural gas and oil production base in Alberta and Saskatchewan.
EnCana’s other operating divisions, Canadian Foothills and USA, will form a natural gas company. With a working name of GasCo, it will represent about two-thirds of EnCana’s current production and proved reserves. It is expected that GasCo will retain the name EnCana. The permanent name of IOCo will be determined before the transaction closes.
Randy Eresman, president and CEO of EnCana, said: We are initiating this process from a position of unprecedented strength. In the past few years, we have transformed EnCana into a leading producer of North American unconventional natural gas and integrated in-situ oil – a company with a unique, low-risk, sustainable growth profile. We have assembled an outstanding portfolio of unconventional natural gas, oil and in-situ oilsands assets.
