Encana sells Louisiana gas interests for $1.3B US

Encana Corp. is exiting Louisiana through a proposed deal worth more than$1.3 billion USin cash and savings.

The buyer is GEP Haynesville LLC (GeoSouthern), a joint venture formed by GeoSouthern Haynesville LP and funds managed by GSO Capital Partners LP.

Encana will transport and market GeoSouthern's Haynesville production on a fee for service basis for the next five years.

It has been sharpening its focus on four strategic areas two in the southern United States and two in Western Canada.

"This is another step in advancing our strategy," Encana president and CEO Doug Suttles said in a statement.

"By further focusing our portfolio, we are making Encana more efficient as we proceed through the second half of 2015 and into 2016."

The Haynesville deal is expected to close in the fourth quarter and become effective Jan. 1, after certain conditions are met.