July 17, 2009 (FinancialWire) — EnCana Corp. (NYSE: ECA) said it has agreed to sell around 409,000 net acres of non-core natural gas and oil producing properties to Bonavista Energy Trust (OTC: BNPUF) encompassing for around $632 million.

Current production on the lands is roughly 60 million cubic feet of natural gas equivalent per day, after royalties, according to EnCana. Production from the assets is about 80 percent natural gas and EnCana retains a lessor royalty on the majority of the lands.

The transaction includes properties known as the Hoadley trend, which covers an expansive area in west-central Alberta located west of Red Deer, running from Caroline north to the Pigeon Lake area just south of Edmonton.

Randy Eresman, EnCana’s president and CEO, said that sale reflects the company’s “ongoing efforts to high-grade our portfolio of producing assets and it represents a substantial portion of our 2009 divestiture target of between $500 million and $1 billion.

He said that EnCana continues to look for other opportunities for divestitures and acquisitions.

The current sale has an effective date of April 1, and is scheduled to close in the third quarter of 2009.

Canada-based EnCana is a North American unconventional natural gas and integrated oilsands company.

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