Encana Corporation has finalized its agreement with Mitsubishi Corporation regarding the Cutbank Ridge Partnership.
In an announcement made on February 17th, Encana disclosed a deal with Mitsubishi, a leading Japanese global integrated business entity, involving an investment of around C$2.9 billion. This investment grants Mitsubishi a 40 percent stake in the Cutbank Ridge Partnership.
The Partnership encompasses approximately 409,000 net acres of undeveloped Montney-formation natural gas lands situated in the Cutbank Ridge resource play in northeast British Columbia.
Following the completion of the transaction on Friday, Mitsubishi acquired its partnership interest for approximately C$1.45 billion, as outlined in the agreement. Additionally, Mitsubishi has committed to investing another C$1.45 billion, along with its 40 percent share of the Partnership’s future capital investment, over an anticipated commitment period of approximately five years.
Encana retains a 60 percent ownership stake in the Cutbank Ridge Partnership and continues to serve as the managing partner and operator of the Partnership.
