Mitsubishi buys Encana BC gas assets

TORONTO (AP) -- Encana Corp. is selling a major stake in its British Columbia gas assets to Mitsubishi Corp in a deal worth $2.9 billion.

Encana said Friday the agreement will see the integrated Japanese global business enterprise take a 40 percent interest in the Cutbank Ridge Partnership.

The partnership holds about 409,000 acres (165,500 hectares) of the undeveloped Montney-formation natural gas lands in northeastern British Columbia with proved undeveloped reserves of approximately 900 billion cubic feet of natural gas equivalent.

Mitsubishi is to pay $1.45 billion on closing, which is expected to occur later this month.

Encana says Mitsubishi will then invest a further $1.45 billion over the next five years, something that will reduce Encana's capital investment commitment.