e6vk
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
of the Securities Exchange Act of 1934
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For: November 29, 2006
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Commission File Number: 1-15226 |
ENCANA CORPORATION
(Translation of registrants name into English)
1800,
855 - 2nd Street SW
Calgary, Alberta, Canada T2P 2S5
(Address of principal executive office)
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
____ Form 40-F
ü
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): ____
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): ____
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
____ No
ü
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82- ____
DOCUMENTS FILED AS PART OF THIS FORM 6-K
See the Exhibit Index to this Form 6-K.
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.
Date: November 29, 2006
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ENCANA CORPORATION
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(Registrant) |
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By:
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/s/ Linda Mackid |
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Name: Linda Mackid |
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Title: Assistant Corporate Secretary |
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Form 6-K Exhibit Index
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Exhibit No. |
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99.1 |
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The following Prospect Disclosure Statements were filed
on November 29, 2006 with the securities regulatory
authorities in Canada as supporting filings under Section 5.9
of National Instrument 51-101 in respect of disclosure which
EnCana Corporation may make from time to time of anticipated
results from subsidiary prospects for the following resources
plays: |
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Christina Lake (McMurray) Bitumen
Play November 29, 2006 |
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Foster Creek (McMurray) Bitumen
Play November 29, 2006 |
EnCana Corporation
Prospect Disclosure Statement
Christina
Lake (McMurray) Bitumen Play November 29, 2006
This disclosure statement is being filed with the securities regulatory authorities in Canada as a
supporting filing under section 5.9 of National Instrument 51-101 in respect of disclosure which
EnCana Corporation (EnCana) may make from time to time of anticipated results from its
subsidiarys prospect known as the Christina Lake Bitumen Play. Christina Lake is one of EnCanas
resource plays.
The following is in response to the items listed in section 5.9 of National Instrument 51-101:
(a) |
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Location and basin name: |
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Centered on Township 76, Range 6 West of 4th Meridian, located in the Athabasca
Oilsands Area of northeast Alberta in the Western Canadian Sedimentary Basin. |
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(b) |
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Gross and net interest in the property: |
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EnCanas current operations are located in an area of approximately 8 sections (5,120
acres), where it holds a 100% working interest. EnCana also holds approximately 175,000 net
acres in the surrounding area, including 165,000 net acres of oilsands rights. This play is
the subject of a pending partnership with ConocoPhillips as announced on October 5, 2006,
with an expected effective date of January 2, 2007. |
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(c) |
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Interest expiry date: |
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EnCana initially held the core area lands on a 5 year permit term which has been converted
to a 15 year oilsands lease which is essentially extended to the life of the play due to
additional drilling and production. Other land held in the immediate vicinity is held under
permits and leases. |
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(d) |
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Target zone name, geologic age and lithology: |
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McMurray Formation, Lower Cretaceous, highly permeable quartzose sands. |
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(e) |
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Distance to the nearest analogous commercial production: |
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Foster Creek (EnCana) is approximately 45 miles away. |
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(f) |
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Product types reasonably expected: |
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Bitumen, 8.5 degrees API. |
Prospect
Disclosure Statement - Christina Lake (McMurray) November 29, 2006
(g) |
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Range of Pool or Field Sizes: |
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Independent estimates indicate 15 billion barrels (gross before royalty) of original
bitumen in place, of which 7.2 billion barrels are considered to be exploitable using SAGD
technology. Of this 7.2 billion barrel resource, 4.2 billion barrels (net after royalty)
are estimated as economically recoverable as of July 1, 2006. This resource is expected to
be sufficient to support the 2015 target rate of 190,000 bbls/d of production for
approximately 60 years. |
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(h) |
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Depth of the target zone: |
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Approximately 1,250 feet TVD (true vertical depth). |
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(i) |
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Estimated cost to drill a well to the target depth and test: |
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Approximately US$2-3 million to drill, complete and tie-in a horizontal well pair (one
steam injector and one producer) to the McMurray Formation target zone. |
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(j) |
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Reasonably expected drilling commencement and completion dates: |
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Drilling operations are ongoing on this resource play with EnCanas long-range plan calling
for exploitation and development through at least 2025. |
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(k) |
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Anticipated prices to be received for each product type reasonably expected: |
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This product sells at a discount to Lloydminster Blend (LLB). |
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(l) |
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Reasonably expected marketing and transportation arrangements: |
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This production is currently blended with synthetic crude or condensate to form Dilbit or
Synbit which is transported to market through existing pipeline systems. |
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(m) |
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Operator and relevant experience: |
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EnCana Oil & Gas Partnership, an indirect wholly-owned partnership of EnCana. EnCana is one
of the largest independent exploration and production companies worldwide and has
considerable experience in all aspects of exploration, exploitation and development
associated with plays of this nature. |
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(n) |
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Risk and probability of success: |
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A significant portion of the Christina Lake field has been delineated through stratigraphic
wells with a typical density of 16 wells per section. EnCana expects that the vast majority
of horizontal injection and production well pairs to be drilled over the life of this
development opportunity will be successful. |
Page 2 of 4
Prospect
Disclosure Statement - Christina Lake (McMurray) November 29, 2006
(o) |
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Positive and negative factors relevant to the expected results, pursuant to section 5.10: |
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The business of exploring for and producing oil and natural gas is inherently risky and
uncertain. Some of these risks and uncertainties include, among other things: volatility of
commodity prices; product supply and demand; imprecision of reserve estimates; timing and
costs of wells and related production facilities; and price and availability of oil field
services. What are believed to be the greater technical risks specific to this play are the
presence of localized gas caps and/or bottom water. |
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
disclosure statement are forward-looking statements or information within the meaning of applicable
securities legislation (collectively referred to herein as forward-looking statements).
Forward-looking statements in this disclosure statement include, but are not limited to:
anticipated lease expiry dates; anticipated landholdings; the expected effective date of the
pending partnership with ConocoPhillips; estimated original bitumen in place; estimated exploitable
resources; estimated recoverable bitumen; anticipated production; estimated drilling costs;
estimated drilling periods; anticipated prices; anticipated number of wells to be drilled;
anticipated drilling success; anticipated marketing and transportation arrangements; and potential
factors relevant to expected results. 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 and assumptions regarding oil and gas prices;
assumptions based upon the companys current guidance; fluctuations in currency and interest rates;
product supply and demand; market competition; risks inherent in the companys marketing
operations, including credit risks; imprecision of reserves estimates and estimates of recoverable
quantities of oil, natural gas and liquids from resource plays and other sources not currently
classified as proved reserves; the companys ability to replace and expand oil and gas reserves;
the ability of the company and ConocoPhillips to successfully negotiate and execute final
definitive agreements relating to the integrated North American heavy oil business and the ability
of the parties to obtain necessary regulatory approvals; refining and marketing margins; potential
disruption or unexpected technical difficulties in developing new products and manufacturing
processes; potential failure of new products to achieve acceptance in the market; unexpected cost
increases or technical difficulties in constructing or modifying manufacturing or refining
facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil;
risks associated with technology; the companys 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
Page 3 of 4
Prospect
Disclosure Statement - Christina Lake (McMurray) November 29, 2006
transportation; changes in environmental and other regulations or the interpretations of such
regulations; political and economic conditions in the countries in which the company operates; 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 disclosure statement are made as of
the date of this disclosure statement, and, except as required by law, 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 disclosure statement are expressly qualified by this cautionary statement.
Page 4 of 4
EnCana Corporation
Prospect Disclosure Statement
Foster
Creek (McMurray) Bitumen Play November 29, 2006
This disclosure statement is being filed with the securities regulatory authorities in Canada as a
supporting filing under section 5.9 of National Instrument 51-101 in respect of disclosure which
EnCana Corporation (EnCana) may make from time to time of anticipated results from its
subsidiarys prospect known as the Foster Creek Bitumen Play. Foster Creek is one of EnCanas
resource plays.
The following is in response to the items listed in section 5.9 of National Instrument 51-101:
(a) |
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Location and basin name: |
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Centered around Township 70, Range 4 West of 4th Meridian, located in the. Athabasca
Oilsands Area of northeast Alberta in the Western Canadian Sedimentary Basin. |
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(b) |
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Gross and net interest in the property: |
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EnCanas current development is located within a core area where it holds a 100% working
interest in 59,000 acres over this play. EnCana also holds approximately 140,000 net acres
in the surrounding area. This play is the subject of a pending partnership with
ConocoPhillips as announced on October 5, 2006, with an expected effective date of January
2, 2007. |
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(c) |
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Interest expiry date: |
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These lands are located on the Cold Lake Air Weapons Range. EnCanas lease is expected to
cover the productive life of the reserves. |
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(d) |
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Target zone name, geologic age and lithology: |
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McMurray Formation, Lower Cretaceous, highly permeable quartzose sands. |
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(e) |
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Distance to the nearest analogous commercial production: |
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Christina Lake (EnCana) is approximately 45 miles away. |
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(f) |
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Product types reasonably expected: |
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Bitumen, 9.5 degrees API. |
Prospect
Disclosure Statement Foster Creek (McMurray) November 29, 2006
(g) |
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Range of Pool or Field Sizes: |
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Independent estimates indicate 29 billion barrels (gross before royalty) of original
bitumen in place, of which 4.3 billion barrels are considered to be exploitable using SAGD
technology. Of this 4.3 billion barrel resource, 2.4 billion barrels (net after royalty)
are estimated as economically recoverable as of July 1, 2006. This resource is sufficient
to support the 2015 target rate of 210,000 bbls/d of production for approximately 30 years. |
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(h) |
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Depth of the target zone: |
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1,500 feet TVD (true vertical depth) on average. |
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(i) |
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Estimated cost to drill a well to the target depth and test: |
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Approximately US$2-3 million to drill, complete and tie-in a horizontal well pair (one
steam injector and one producer) to the McMurray Formation target zone. |
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(j) |
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Reasonably expected drilling commencement and completion dates: |
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Drilling operations are ongoing on this resource play with EnCanas long-range plan calling
for exploitation and development through at least 2025. |
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(k) |
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Anticipated prices to be received for each product type reasonably expected: |
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This product sells at a discount to Lloydminster Blend (LLB). |
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(l) |
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Reasonably expected marketing and transportation arrangements: |
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This production is currently blended with condensate to form Dilbit which is transported
to market through existing pipeline systems. |
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(m) |
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Operator and relevant experience: |
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EnCana Oil & Gas Partnership, an indirect wholly-owned partnership of EnCana. EnCana is one
of the largest independent exploration and production companies worldwide and has
considerable experience in all aspects of exploration, exploitation and development
associated with plays of this nature. |
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(n) |
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Risk and probability of success: |
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Significant portions of the Foster Creek field have been delineated through stratigraphic
wells with a typical density of 16 wells (plus) per section. EnCana anticipates that the
vast majority of horizontal development well pairs to be drilled over the life of this
opportunity will be successful. |
Page 2 of 4
Prospect
Disclosure Statement Foster Creek (McMurray) November 29, 2006
(o) |
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Positive and negative factors relevant to the expected results, pursuant to section 5.10: |
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The business of exploring for and producing oil and natural gas is inherently risky and
uncertain. Some of these risks and uncertainties include, among other things: volatility of
commodity prices; product supply and demand; imprecision of reserve estimates; timing and
costs of wells and related production facilities; and price and availability of oil field
services. What are believed to be the greater technical risks specific to this play are the
presence of localized gas caps and/or bottom water. |
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
disclosure statement are forward-looking statements or information within the meaning of applicable
securities legislation (collectively referred to herein as forward-looking statements).
Forward-looking statements in this disclosure statement include, but are not limited to:
anticipated lease expiry dates; anticipated landholdings; the expected effective date of the
pending partnership with ConocoPhillips; estimated original bitumen in place; estimated exploitable
resources; estimated recoverable bitumen; anticipated production; estimated drilling costs;
estimated drilling periods; anticipated prices; anticipated number of wells to be drilled;
anticipated drilling success; anticipated marketing and transportation arrangements; and potential
factors relevant to expected results. 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 and assumptions regarding oil and gas prices;
assumptions based upon the companys current guidance; fluctuations in currency and interest rates;
product supply and demand; market competition; risks inherent in the companys marketing
operations, including credit risks; imprecision of reserves estimates and estimates of recoverable
quantities of oil, natural gas and liquids from resource plays and other sources not currently
classified as proved reserves; the companys ability to replace and expand oil and gas reserves;
the ability of the company and ConocoPhillips to successfully negotiate and execute final
definitive agreements relating to the integrated North American heavy oil business and the ability
of the parties to obtain necessary regulatory approvals; refining and marketing margins; potential
disruption or unexpected technical difficulties in developing new products and manufacturing
processes; potential failure of new products to achieve acceptance in the market; unexpected cost
increases or technical difficulties in constructing or modifying manufacturing or refining
facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil;
risks associated with technology; the companys ability to
Page 3 of 4
Prospect
Disclosure Statement Foster Creek (McMurray) November 29, 2006
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 or the interpretations of such regulations; political and
economic conditions in the countries in which the company operates; 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 disclosure statement are made as of
the date of this disclosure statement, and, except as required by law, 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 disclosure statement are expressly qualified by this cautionary statement.
Page 4 of 4