Canadian oil and gas company Encana has divested its oil and gas assets in San Juan Basin, New Mexico to U.S.-based energy company DJR Energy.
DJR Energy paid $480 million for the oil and gas assets in San Juan Basin and expects to produce a total of about 7,000 barrels of oil equivalent per day.
Encana said that the divestment of its operations in the San Juan Basin consists of about 182,000 net acres, representing its total land holdings in the basin.
With the acquisition, DJR enhances its position in the core of the oil window in the San Juan Basin with more than 350,000 net acres, an inventory of more than 1,100 high-value drilling locations and a midstream gathering system.