NW Natural (NWN) Investing $250M in Encana (ECA) Deal

Northwest Natural Gas Co. (NYSE:NWN) on Friday said it will invest $250 million in a joint venture with Canadian natural gas giant Encana Corp. (NYSE:ECA) to develop reserves from a natural gas field in Wyoming.

The Portland-based natural gas utility (NYSE:NWN) said the partnership will supply up to 10 percent of its average annual requirements for the first 10 years and provide long-term gas supplies for more than 30 years.

The joint venture between Northwest Natural and Encana Oil & Gas Inc., a subsidiary of Calgary-based Encana Corp. (NYSE: ECA), will focus on developing sections of the Jonah Field, a natural gas field about 65 miles north of Rock Springs in southwestern Wyoming.

In a news release, NW Natural said the field is considered one of the 10 largest gas fields in the nation with more than two trillion cubic feet equivalent of proven reserves.

Under the agreement, NW Natural will pay between $45 million and $55 million per year over five years to cover drilling costs. In exchange, the company will receive working interests in certain sections of the Jonah Field that include both future and currently producing wells.




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