EnCana discovers gas at Annapolis in deepwater offshore Nova Scotia

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August 13, 2002

EnCana Corporation (TSE, NYSE: ECA) today announced that the Annapolis G-24 deepwater wildcat well, located 350 kilometers south of Halifax offshore Nova Scotia, has discovered natural gas. The well encountered approximately 100 feet (30.5 meters) of net gas pay over several zones.

The Marathon Canada Limited-operated G-24 well, which was drilled on Exploration License 2377 in 5,500 feet (1,710 meters) of water, will be temporarily abandoned to enable a possible re-entry at a later date.

"Following our success in the shallow water, with Deep Panuke, this discovery of gas is an essential step in determining the commercial potential of the deepwater Nova Scotia basin," said Gerry Macey, President, Offshore & New Ventures Exploration. "The G-24 well has confirmed the presence of reservoirs and hydrocarbons. It is a very encouraging beginning for our deepwater acreage."

EnCana holds a 26-percent interest in the Annapolis prospect. The remaining interests are held by Marathon Oil Company, operator (30 percent); Norsk Hydro Canada Oil and Gas Inc. (25 percent); and Murphy Oil Company Limited (19 percent). Offshore Nova Scotia, EnCana has interests in a total of 4.9 million gross acres of lands (2.7 million net), of which 3.0 million gross acres are in the deepwater region (1.7 net). The company has identified multiple prospects on these leases.

The first well to be drilled on the Annapolis prospect, Annapolis B-24, was suspended in March 2002 after experiencing an influx of gas at a well depth of 11,469 feet (3,500 meters). Following a detailed analysis of this event and the condition of the well, partners elected to plug and abandon the well for mechanical reasons. Annapolis G-24 was a replacement well. It spudded in April 2002 adjacent to the B-24 well, and was drilled to a total depth of 20,282 feet (6,182 meters).


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