Encana to invest another $600 million this year and boost production

CALGARY – Encana Corp. (TSX:ECA) says it is planning to invest an additional $600 million during the remainder of 2012 and boost its production outlook.

That amount is in addition to the company’s original $2.9 billion budget

The Calgary-based company says it will spend more to take advantage of positive initial results in a number of oil and liquids rich natural gas plays.

For 2013, capital investment is estimated at between $4 billion to $5 billion.

In addition to its revised capital guidance, Encana has increased its expected total liquids production for the year by seven per cent to 30,000 barrels per day.

Encana’s original 2012 plan to drill between 40 and 45 wells has been expanded to drill between 115 and 120 wells in 10 plays primarily focused on oil.

The company is expecting to drill approximately 350 oil and liquids rich wells in 2013.

“We’re encouraged with the success we have realized so far this year in our oil and liquids rich natural gas plays,” said Encana president and CEO Randy Eresman.

”Increasing our 2012 capital investment supports our goal of developing a more diversified production portfolio.”

Encana will provide further details about its plans later today when it hosts an Investor Day event in New York.