CPPIB And Broe Group To Buy Encana Oil & Gas Assets For $900 Million
Canada Pension Plan Investment Board (CPPIB) and The Broe Group said Thursday they have agreed to purchase oil & gas assets from Encana Corp. for a value of about $900 million. CPPIB will own 95% of the assets, while The Broe Group will own 5%, the companies said in a statement. The deal is expected to close in the fourth quarter. The assets are located in northeast Colorado and produced an average of 52 million cubic feet per day of natural gas and 14,800 barrels a day of crude oil and natural gas liquids in the first half. Encana shares were not yet active in premarket trade, but are down 37% in the year so far, while the S&P 500 has lost 3%.
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