Encana Corporation has announced that the cash tender offer made by Alenco Acquisition Company Inc., Encana's indirect, wholly owned subsidiary to acquire all of the issued and outstanding shares of common stock of Athlon Energy Inc. expired at midnight, New York City time on Wednesday, November 12, 2014. All shares that were validly tendered into the offer and not validly withdrawn have been accepted for payment. Promptly following consummation of the offer, Alenco Acquisition will be merged with and into Athlon, and Athlon will become an indirect, wholly owned subsidiary of Encana. Encana expects to complete the offer and the merger today.
Premier acreage in the Permian Basin
The completion of the previously announced US$ 7.1 billion acquisition of Texas-based Athlon gives the company a premier 140 000 net acre position in the oil-rich Permian Basin.
"We are pleased to close this transformative acquisition and look forward to welcoming the Athlon team into Encana. We are delivering on the portfolio promises we made for 2017, today," says Doug Suttles, President & CEO of Encana. "Consistent with our strategy, we have built a balanced and resilient portfolio that comprises high-quality oil, natural gas liquids and natural gas opportunities. Our growth areas now include the top two resource plays in Canada, the Montney and the Duvernay, and the top two resource plays in the United States, the Eagle Ford and the Permian."
Encana expects the acquisition will add current production of about 32 000 boepd. In 2015, Encana intends to invest at least US$1 billion of capital in the play and ramp up from four to at least seven horizontal rigs by year-end.
The company sees the potential for approximately 5000 horizontal well locations with potential recoverable resource of approximately 3 billion boe. The Permian is expected to contribute significantly to Encana's total liquids production which is projected to approach 250 000 bpd by 2017.
Adapted from press release by Cecilia Rehn
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/14112014/encana-to-acquire-athlon-energy-and-establish-premier-position-in-permian-basin/