SECURITIES AND EXCHANGE COMMISSION
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
of the Securities Exchange Act of 1934
For August 16, 2004 | Commission File Number: 1-15226 |
ENCANA CORPORATION
1800, 855 2nd Street SW
Calgary, Alberta, Canada T2P 2S5
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F o | Form 40-F þ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes o | No þ |
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
SIGNATURES | ||||||||
Form 6-K Exhibit Index |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ENCANA CORPORATION (Registrant) |
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By: | /s/ Patricia M. Orr | |||
Name: | Patricia M. Orr | |||
Title: | Assistant Corporate Secretary | |||
Date: August 16, 2004
Form 6-K Exhibit Index
Exhibit No. |
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News Release dated August 16, 2004 referred to as: | |
EnCana closes sale of conventional natural gas assets |
EnCana closes sale of conventional natural gas assets
Sale generates approximately US$219 million in proceeds
CALGARY, Alberta (August 16, 2004) EnCana Corporation (TSX, NYSE: ECA) has closed the previously announced sale of its conventional natural gas assets producing approximately 7,250 barrels of oil equivalent per day, after royalties, to a Calgary-based oil and gas producer for approximately US$219 million, which is subject to adjustments. EnCana plans to use the sale proceeds for general corporate purposes, including debt repayment.
EnCana Corporation
With an enterprise value of approximately US$30 billion, EnCana is one of the
worlds leading independent oil and gas companies and North Americas largest
independent natural gas producer and gas storage operator. Ninety percent of
the companys assets are located in North America. EnCana is the largest
producer and landholder in Western Canada and is a key player in Canadas
emerging offshore East Coast basins. Through its U.S. subsidiaries, EnCana is
one of the largest gas explorers and producers in the Rocky Mountain states and
has a strong position in the deep water Gulf of Mexico. International
subsidiaries operate two key high potential international growth regions:
Ecuador, where it is the largest private sector oil producer, and the U.K.,
where it is the operator of a large oil discovery. EnCana and its subsidiaries
also conduct high upside potential new ventures exploration in other parts of
the world. EnCana is driven to be the industrys high performance benchmark in
production cost, per-share growth and value creation for shareholders. EnCana
common shares trade on the Toronto and New York stock exchanges under the
symbol ECA.
ADVISORY REGARDING RESERVES DATA AND OTHER OIL AND GAS INFORMATION EnCanas disclosure of reserves data and other oil and gas information is made in reliance on an exemption granted to EnCana by Canadian securities regulatory authorities which permits it to provide such disclosure in accordance with U.S. disclosure requirements. The information provided by EnCana may differ from the corresponding information prepared in accordance with Canadian disclosure standards under National Instrument 51-101 (NI 51-101). EnCanas reserves quantities represent net proved reserves calculated using the standards contained in Regulation S-X of the U.S. Securities and Exchange Commission. Further information about the differences between the U.S. requirements and the NI 51-101 requirements is set forth under the heading Note Regarding Reserves Data and Other Oil and Gas Information in EnCanas Annual Information Form.
Natural gas volumes that have been converted to barrels of oil equivalent (BOEs) have been converted on the basis of six thousand cubic feet (mcf) to one barrel (bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent equivalency at the well head.
Natural gas volumes are sold based on heat content in British Thermal Units (Btus) but physically measured in standard cubic feet (scf). The heat content of natural gas varies by formation and therefore by production region. For example, the heat content of EnCanas natural gas production in Alberta is approximately 1,020 Btu/scf and the U.S. Rockies is approximately 1,110 Btu/scf. The average heat content of EnCanas natural gas production in total is approximately 1,040 Btu/scf or 1.04 million British Thermal Units (MMBtu)/Mcf.
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EnCana Corporation resource descriptions
EnCana uses the terms resource play, estimated ultimate recovery and resource
potential. Resource play is a term used by EnCana to describe an accumulation
of hydrocarbons known to exist over a large areal expanse and/or thick vertical
section, which when compared to a conventional play, typically has a lower
geological and/or commercial development risk and lower average decline rate.
As used by EnCana, estimated ultimate recovery (EUR) has the meaning set out
jointly by the Society of Petroleum Engineers and World Petroleum Congress in
the year 2000, being those quantities of petroleum which are estimated, on a
given date, to be potentially recoverable from an accumulation, plus those
quantities already produced therefrom. Resource potential is a term used by
EnCana to refer to the estimated quantities of hydrocarbons that may be added
to proved reserves over a specified period of time largely from a specified
resource play or plays. EnCanas current stated estimates of unbooked resource
potential utilizes a five year time frame for their specified period of time.
ADVISORY REGARDING FORWARD-LOOKING STATEMENTS In the interests of providing EnCana shareholders and potential investors with information regarding EnCana, including managements assessment of EnCanas and its subsidiaries future plans and operations, certain statements contained in this news release are forward-looking statements within the meaning of the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements in this news release include, but are not limited to: anticipated use of sales proceeds; and references to potential exploration.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the companys actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: volatility of oil and gas prices; fluctuations in currency and interest rates; product supply and demand; market competition; risks inherent in the companys marketing operations, including credit risks; imprecision of reserve estimates and estimates of recoverable quantities of oil, natural gas and liquids from resource plays and other sources not currently classified as proved or probable reserves; the companys ability to replace and expand oil and gas reserves; its ability to generate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; the timing and the costs of well and pipeline construction; the companys ability to secure adequate product transportation; changes in environmental and other regulations; political and economic conditions in the countries in which the company operates, including Ecuador; the risk of war, hostilities, civil insurrection and instability affecting countries in which the company operates and terrorist threats; risks associated with existing and potential future lawsuits and regulatory actions made against the company; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by EnCana. Although EnCana believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as of the date of this news release, and EnCana does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Further information on EnCana Corporation is available on the companys Web site, www.encana.com, or by contacting:
FOR FURTHER INFORMATION:
Investor contact:
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Media contact: | |
EnCana Corporate Development |
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Tracy Weeks Manager, Investor Relations (403) 645-2007 |
Almas Kassam Analyst, Media Relations (403) 645-4716 |
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