CARRIE KELLY
The Pipeline
One thing is certain about EnCana Corp.’s restructuring — the two new companies will not be named GasCo and IOCo.
The process of coming up with names for the new companies has begun, said Randy Eresman, president and CEO of EnCana and designated president for the new gas company.

“The initial feedback we’ve received on the proposed transaction has been somewhat mixed,” Eresman said somewhat tongue in cheek. “On one hand we’ve been told that the proposed transaction seems to make a lot of financial, operational and strategic sense. However, on the other hand, we’ve been told with quite a bit of conviction that we, and I think they meant me, really suck at coming up with catchy inspiring names for the new companies. We agree on both counts.”
In addition to coming up with names, EnCana is working toward providing an orderly transfer of debt between the companies. EnCana’s 2008 year end debt is projected to be $10 billion, with $6.7 billion being assumed by the gas company and the other $3.3 billion taken on by the integrated oil company.
EnCana announced the teams that will head up the two new companies. While Eresman will take the helm of GasCo, the position of chief financial officer will be filled by Sherri Brillon. For the integrated oil company, Brian Ferguson will become the CEO and Ivor Ruste will be the CFO.
“Behind the scenes there is an awful lot of work being done,...but we’re also very focused for the next six months on running the EnCana business,” Eresman said.
Once EnCana is separated into two new companies, the GasCo side is expected to be North America’s second largest gas producer with a 26,000 well inventory.
“We don’t think it would be very long, based on our resource potential, that we would assume the number one spot,” Eresman said.
Shale gas plays in the Horn River basin in British Columbia will be a focus for the company, as will the Haynesville play in the United States.
The integrated oil company will have five key resource plays, said Brian Ferguson, designated CEO.
“While we are a new company, we are not a start up,” he said. “Even though we will have a new name, we will have a proven track record.”
The company will have the world’s largest carbon sequestration project, a 50 per cent ownership in two refineries in Texas and Illinois and more than a 10-year inventory of drilling locations. IOCo  will also take on expansions at the Christina Lake and Foster Creek oilsands projects in Alberta.
One hundred per cent of the oilsands operations are in-situ, which offers a “small environmental footprint,” Ferguson said.
“Environmental concerns have been heightened for the oilsands industry. I believe our company will be able to distinguish itself on our environmental strategy and performance,” he said.
The new integrated oil company will have both oil and gas assets, with oil dominating future growth.
“We have nine emerging plays with natural bitumen or crude oil in place of 35 billion barrels. This is an asset rich resource company. We literally have decades of growth ahead of us,” said Ferguson.
The split of EnCana into two separate companies is expected to take place in early 2009.

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