Black gold: EnCana says heavy oil prices are good.
EnCana bets on strong bitumen prices
Canadian giant EnCana which is splitting into two companies, said “strength” in heavy oil prices will continue.
“With the current oil price at $67 approximately, we’re realizing a bitumen field price in the range of $52 to $54 per barrel,” EnCana executive David Goldie said in a presentation on a conference call with investors and analysts today.
EnCana announced on 10 September it will proceed with a plan to split into a natural-gas producer, to retain the name EnCana, and a business focused on extracting and refining oil, called Cenovus Energy.
The separation is expected to wrap up on 30 November. Cenovus, which will be based in Calgary, is expected to produce the equivalent of 248,000 barrels of oil per day in this year, EnCana said on 10 September.
Proved reserves are estimated to be 1.2 billion barrels, 75% of which is oil, according to a Bloomberg report.
The company’s assets represent about a third of EnCana’s current production.
Cenovus will be headed by Brian Ferguson, currently EnCana’s chief financial officer.