In the latest sign of an industry-wide move away from natural gas, Encana is selling its Jonah Field properties. For more than a decade, Encana has been one of the largest natural gas producers in Wyoming thanks to the field near Pinedale, but company spokesperson Doug Hock says moving forward, Encana is trying to diversify its assets.
“So that we’re not tied to one particular commodity. Or we’ve got more flexibility in terms of oil versus natural gas,” Hock says.
Hock says Encana hasn’t decided what to do with the $1.8 billion dollars from the sale, but he says there are several options, including reinvesting it in production elsewhere.
Callie Kolbe is an analyst with Bentek Energy. She says the company is likely to put the money towards oil development in Colorado’s D-J Basin.
“These producers, they’re chasing where the money is at," Kolbe says. "And the money right now is in these wetter plays, and that’s where they’re following it.”
TPG Capital, a private equity firm, purchased the Jonah Field assets from Encana. In a press release, the company says it plans to continue production and retain employees working in the field. A subsidiary, Maverick American Natural Gas will be in charge of operations. The firm also said it plans to continue exploration on nearby undeveloped properties.