CALGARY — Encana Corp. is actively seeking partners to jointly develop some of its North American natural gas holdings, the company’s chief executive said Monday.
“I think it will be really helpful and I think it will make our economics sing,” Randy Eresman told reporters after he presented at an investment conference hosted by the Canadian Association of Petroleum Producers.
Calgary-based Encana (TSX:ECA) is looking at “quite a few” options for farm out arrangements, in which the company would give up a slice of its production in exchange for third-party capital, he said.
“I would like to have at least US$1 billion of third-party money coming in per year, with the possibility to be twice that high.”
In March, Encana signed such an agreement with Korea Gas Corp., in which the Asian company bought a 50 per cent stake in properties in the promising Horn River Basin and Montney shale gas plays in northeastern B.C..
Those types of arrangements allow Encana to bring projects to fruition much more quickly than would otherwise be the case.