EnCana OK’s a Big Field

Article Excerpt

ENCANA $66 (Toronto symbol ECA; SI Rating: Average) has decided to develop the Deep Panuke offshore natural gas field located approximately 250 kilometers southeast of Nova Scotia on the Scotian Shelf. Deep Panuke will cost EnCana an estimated $550 million to bring into production (all amounts except share price in U.S. dollars). To put that into perspective, EnCana reported cash flow of $2.2 billion in the three months ended September 30, 2007. Output should begin in 2010. Deep Panuke will deliver between 200 million and 300 million cubic feet of natural gas per day to markets in Canada and the northeast United States. That will increase EnCana’s daily gas production by between 8% and 10%. EnCana is still a buy. buy…