Encana Corp (USA)(NYSE:ECA) has completed the sale of its Northern Colorado operations to a newly formed Denver oil and gas company called Crestone Peak Resources. The deal which brings to an end Encana’s oil-focused drilling and production operations in Colorado produced a whopping $900 million. Expressing the company’s contentment in what it had done, Encana’s President and CEO, Doug Suttles said that they will now put more focus on the handover and transition of items, a move that is expected to take not more than four weeks.
Meanwhile, Crestone has also expressed its commitment to closing the acquisition deal which comprising of Encana’s 51,000 net acres. Encana spokesman Doug Hock has confirmed that about 100 Encana employees who worked on Encana’s sold out operations will move to the new company.
Crestone Peak Resources names Tony Buchanon as its new CEO.
The newly formed Denver energy company has picked on a former chief operating officer at Denver-based Bonanza Creek Energy Inc (NYSE:BCEI) to take up the leadership roles. The new appointee who supposedly has more than 34 years of industry experience is somewhat familiar with the DJ basin’s attributes given that he has also been at the helm of leadership at Noble Energy Inc where he was a production operations manager.
Creston’s chairperson, Avik Dey who is also the managing director and head of natural resources at Canada Pension Plan Investment Board says that Crestone is set to grow into higher levels of independence within the industry, a goal that Buchanon will help put into reality. In any case, he has a wealth of experience from notable corporations the likes of Rosetta Resources Inc. (NASDAQ:ROSE), Trend Exploration Co as well Mobil Exploration and Production among others.
In his comment on his new appointment, Buchanon said that the company has everything in place to be tremendously successful. The team is intact, assets, investor’s support in addition to a community that is committed to environmental stewardship and employee safety.