THE JONAH FIELD - Encana

THE JONAH FIELDQuick facts1,300 wells drilled through 2011160 gross additional wells projected to drill through 2013total productive area about 24,000 acresnet production about 471 million cubic feet of gas per dayEncana USA currently operates an efficient four rig drillingprogram to develop new wells at rates comparable toprior years while minimizing impactsWho we areEncana Oil and Gas (USA) Inc. is one of North America’s leadingindependent natural gas producers. In Wyoming, Encana USA operatesin the Jonah Field, the Green River Basin and the Wind River Basin andprovides jobs for more than 800 Wyoming workers. Encana USA alsohas operations in Colorado, Louisiana and Texas.The future of the Jonah FieldWhile the Jonah Field will produce natural gas for decades, drilling of newwells in Jonah is expected to be complete in the next three to five years.In April of 2012, Encana USA entered into an Earning and DevelopmentAgreement with Exaro Energy III LLC, which provides funding to continuedevelopment drilling in the play. This investment is expected to providestability for Encana USA’s drilling program in Jonah and the jobs it providesfor Wyoming people and communities. Federal approval of Encana USA’splan to drill a maximum of 3,500 wells over 10 years in the proposedNormally Pressured Lance (NPL) located adjacent to Jonah will allowEncana USA efficient operational planning and Wyoming communitieswould be able to keep steady jobs and tax revenues.Encana USA strives to be the leaderin reducing air emissions in WyomingEncana USA’s goals are to minimize emissions of nitrogen oxides (NOx)and volatile organic compounds (VOC) from natural gas production inthe Jonah Field. Encana USA has:• funded air quality studies• reduced gathering system pressure• completed facility consolidation and upgrade• converted drill rig engines from diesel to natural gas• implemented flareless flowback green well completion techniques• built a workforce facility to improve safety and reduce traffic into andout of the fieldJonah Field facts40-50 yearsestimated life of the Jonah Field171,915,000,000 cubic feetnatural gas produced from the Jonah Field in 20111,562,000 barrelsoil produced from the Jonah field in 201171approximate net wells drilledin 2011 Jonah operations$213,000,000approximate tax revenues generated in 2011for Wyoming state and local governmentsWildlife protectionEncana USA is a recognized leader in improving wildlife habitat withinproject areas.• big game habitat and migration corridors have been identifiedand protected• planned drilling minimizes impacts to sage grouse and other wildlifeencana.com

Surface disturbance and reclamationEncana USA respects the land and our neighbors who live and worknearby. Encana USA strives to return the land in our area of operationsto as good or better than it was before energy development.• soil conditions are re-established and seeded with indigenous plants• directional drilling on multi-well pads minimize impacts• minimal access roads and equipment areas are maintainedEncana USA in Wyoming 2011Groundwater protectionEncana USA deploys state of the art technology in the Jonah Field toprotect and monitor groundwater. Best Management Practices controlsurface runoff and protect natural drainages.• natural gas is produced approximately 2 miles below groundwater• monitoring wells include baseline water studies and routinewater sampling• Encana USA recycles produced water to be used repeatedly incompletion operationsTax revenue from EncanaEncana jobsWyoming state severance taxes $72,000,000 $5,389,301State royalty paymentsFederal royalty paymentsFederal royalties returned to WyomingGross production (Ad Valorem) taxes to countiesWyoming personal property taxes to countiesWyoming sales/use taxesTribal royalty and severance taxes$14,000,000$2,184,841$2,000,000$5,000,000$5,000,000$0 $30million$72,000,000$72,000,000$60million$90million$145,500,000$120million$150millionEncana USA providesjobs for more than800Wyoming workers,and contractswith more than300Wyoming companiesIn the interests of providing Encana Corporation’s (“Encana”) shareholders and potential investors with informationregarding Encana, including management’s assessment of Encana’s and its subsidiaries’ future plans and operations, certainstatements contained in this document may contain “forward-looking statements” or “forward-looking information” withinthe meaning of applicable securities legislation. Forward-looking statements may include, but are not limited to: estimatesof gross additional wells to be drilled through 2013, net production per day and total productive area; expectation forexisting agreement to provide funding for continued development in the play, including stability of the drilling program andjobs in Wyoming; estimated number of wells to be drilled over 10 years in the NPL area adjacent to Jonah; projectedmaximum drilling activity in Jonah and NPL; and estimated life of the Jonah field. Readers are cautioned not to place unduereliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations uponwhich they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known andunknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts,projections and other forward-looking statements will not occur, which may cause the company’s actual performance andfinancial results in future periods to differ materially from any estimates or projections of future performance or resultsexpressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, amongother things: volatility of, and assumptions regarding natural gas and liquids prices, including substantial or extended declineof the same and their adverse effect on the company’s operations and financial condition and the value and amount of itsreserves; reserves; assumptions based upon the company’s current guidance; fluctuations in currency and interest rates;risk that the company may not conclude divestitures of certain assets or other transactions (including third-party capitalinvestments, farm-outs or partnerships, which Encana may refer to from time to time as “joint ventures”) as a result ofvarious conditions not being met; product supply and demand; market competition; risks inherent in the company’s andits subsidiaries’ marketing operations, including credit risks; imprecision of reserves estimates and estimates of recoverablequantities of natural gas and liquids from resource plays and other sources not currently classified as proved, probable orpossible reserves or economic contingent resources, including future net revenue estimates; marketing margins; potentialdisruption or unexpected technical difficulties in developing new facilities; unexpected cost increases or technical difficultiesin constructing or modifying processing facilities; risks associated with technology; the company’s ability to acquire orfind additional reserves; hedging activities resulting in realized and unrealized losses; business interruption and casualtylosses; risk of the company not operating all of its properties and assets; counterparty risk; downgrade in credit rating andits adverse effects; liability for indemnification obligations to third parties; variability of dividends to be paid; its ability togenerate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sourcesof debt and equity capital; the timing and the costs of well and pipeline construction; the company’s ability to secureadequate product transportation; changes in royalty, tax, environmental, greenhouse gas, carbon, accounting and otherlaws or regulations or the interpretations of such laws or regulations; political and economic conditions in the countries inwhich the company operates; terrorist threats; risks associated with existing and potential future lawsuits and regulatoryactions made against the company; and other risks and uncertainties described from time to time in the reports andfilings made with securities regulatory authorities by Encana. Although Encana believes that the expectations representedby such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to becorrect. Readers are cautioned that the foregoing list of important factors is not exhaustive. In addition, assumptionsrelating to such forward-looking statements generally include Encana’s current expectations and projections made in lightof, and generally consistent with, its historical experience and its perception of historical trends, including the conversion ofresources into reserves and production as well as expectations regarding rates of advancement and innovation, generallyconsistent with and informed by its past experience, all of which are subject to the risk factors identified elsewhere in thisdocument. Forward looking statements are made as of the date hereof, and except as required by law, Encana undertakesno obligation to update publicly or revise any forward-looking information, whether as a result of new information, futureevents or otherwise. The forward-looking statements contained above are expressly qualified by this cautionary statement.FOR MORE INFORMATION CONTACT: 866.896.6371 or wy_info@encana.comencana.comMay 2012