Phoenix Duvernay Gas (“Phoenix”), a wholly owned subsidiary of PetroChina International Investment Company Limited (“PetroChina International”), completed agreements with Encana Corporation (“Encana”) whereby Phoenix acquired an undivided 49.9 per cent interest in Encana's approximately 445,000 acres in the Duvernay natural gas play in West Central Alberta and at the same time formed a joint venture for the purpose of developing these properties. Encana continues to own the remaining undivided 50.1 per cent interest and has been appointed operator of the joint venture.
Phoenix will pay total consideration of $2.18 billion for the acquisition. It paid $1.8 billion to Encana at closing and will pay an additional $1.0 billion over the next four years in the form of a carry of half of Encana's share of development capital. Phoenix and Encana plan to invest a total of $4.0 billion in new drilling, completion and processing facilities over the first four years.
Phoenix was represented in-house by PetroChina International's legal team and by Bennett Jones LLP with a team led by Don Greenfield, QC, and including Pat Maguire, Angus Mitchell, Beth Riley, Stephen Burns, Yun Zhu, Krishna Koul, Kieran Ryan, Tariq Remtulla, Gavin Carscallen, Kevin Myson and Kim Kapesi-Miller.
Encana was represented in-house by William MacGillivray and Danielle Parrotta, with assistance from Keith McClelland and by Burnet, Duckworth & Palmer LLP with a team led by Alicia Quesnel and including Jody Wivcharuk, Carolyn Wright, Jim Swanson and Hazel Saffery.