Encana Corporation (NYSE:ECA) is sitting on a large acreage position in the Duvernay shale play up in Canada. The formation stretches across 20% of Alberta and is home to vast amounts of natural gas, natural gas liquids, and condensate. Recently, management has made some misleading comments in regards to why the joint venture developing the play isn't ramping up production. Let's dig in.
Overview
Canada’s National Energy Board, using data from the Alberta Geological Survey, estimates that the Duvernay shale formation is home to 3.4 billion barrels of crude oil, 6.3 billion barrels