Canada-based gas producer deals for U.S. energy firm

InTech, Jun 2004

The largest independent oil and gas producer in North America, Calgary-based EnCana Corp., will pay $2.7 billion for Denver-based energy producer Tom Brown Inc.

EnCana officials said the deal will hike the coma pany's production of natural gas in the U.S. to 1 billion cubic feet per day at a time of declining domestic output and tight inventories. EnCana said Brown's long-life natural gas reserves and unconventional resource holdings will fuel growth rates in years ahead.

Overall the purchase will add daily production of about 325 million cubic feet-equivalent of gas and oil, 1.2 trillion cubic feet of proved reserves, and 2 million undeveloped acres, most of which are in the U.S. Rockies.