TMX group

CALGARY, June 30 /CNW/ - EnCana Corporation (TSX, NYSE: ECA) has closed
the previously announced sale of conventional oil and gas assets producing
approximately 6,400 barrels of oil equivalent per day, after royalties,
(6,750 barrels of oil equivalent per day before royalties) to StarPoint Energy
Trust for approximately C$404 million (US$326 million) before adjustments.
Production from the assets is about 86 percent oil and natural gas liquids.
All dollar figures are U.S. dollars unless otherwise noted.
Since January 2004, EnCana has divested of approximately 84,000 barrels
of oil equivalent per day of conventional production, generating proceeds of
about $6 billion. EnCana plans to use the proceeds from these sales to pay
down debt and purchase shares pursuant to the company's Normal Course Issuer
Bid program.

EnCana Corporation
With an enterprise value of approximately US$44 billion, EnCana is one of
North America's leading natural gas producers, is among the largest holders of
gas and oil resource lands onshore North America and is a technical and cost
leader in the in-situ recovery of oilsands bitumen. EnCana delivers
predictable, reliable, profitable growth from its portfolio of long-life
resource plays situated in Canada and the United States. Contained in
unconventional reservoirs, resource plays are large contiguous accumulations
of hydrocarbons, located in thick or areally extensive deposits, that
typically have low geological and commercial development risk, low average
decline rates and very long producing lives. The application of technology to
unlock the huge resource potential of these plays typically results in
continuous increases in production and reserves and decreases in costs over
multiple decades of resource play life. EnCana common shares trade on the
Toronto and New York stock exchanges under the symbol ECA.

ADVISORY REGARDING RESERVES DATA AND OTHER OIL AND GAS INFORMATION -
EnCana's disclosure of reserves data and other oil and gas information is made
in reliance on an exemption granted to EnCana by Canadian securities
regulatory authorities which permits it to provide such disclosure in
accordance with U.S. disclosure requirements. The information provided by
EnCana may differ from the corresponding information prepared in accordance
with Canadian disclosure standards under National Instrument 51-101     
(NI 51-101). EnCana's reserves quantities represent net proved reserves
calculated using the standards contained in Regulation S-X of the U.S.
Securities and Exchange Commission. Further information about the differences
between the U.S. requirements and the NI 51-101 requirements is set forth
under the heading "Note Regarding Reserves Data and Other Oil and Gas
Information" in EnCana's Annual Information Form.
Natural gas volumes that have been converted to barrels of oil equivalent
(BOEs) have been converted on the basis of six thousand cubic feet (mcf) to
one barrel (bbl). BOEs may be misleading, particularly if used in isolation.
A BOE conversion ratio of six mcf to one bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
necessarily represent value equivalency at the well head.

EnCana Corporation resource descriptions
EnCana uses the terms resource play, estimated ultimate recovery,
unbooked resource potential, total resource portfolio and total resource life.
Resource play is a term used by EnCana to describe an accumulation of
hydrocarbons known to exist over a large areal expanse and/or thick vertical
section, which when compared to a conventional play, typically has a lower
geological and/or commercial development risk and lower average decline rate.
As used by EnCana, estimated ultimate recovery (EUR) has the meaning set out
jointly by the Society of Petroleum Engineers and World Petroleum Congress in
the year 2000, being those quantities of petroleum which are estimated, on a
given date, to be potentially recoverable from an accumulation, plus those
quantities already produced therefrom. Unbooked resource potential is a term
used by EnCana to refer to the estimated quantities of hydrocarbons that may
be added to proved reserves through the low-risk development of known
resources within existing landholdings that meet the company's targeted
economic thresholds. Total resource portfolio is the sum of proved reserves
plus unbooked resource potential. Total resource life is calculated by
dividing the total resource portfolio by annualized production as of a given
date.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS - In the interests of
providing EnCana shareholders and potential investors with information
regarding EnCana, including management's assessment of EnCana's and its
subsidiaries' future plans and operations, certain statements contained in
this news release are forward-looking statements within the meaning of the
"safe harbour" provisions of the United States Private Securities Litigation
Reform Act of 1995. Forward-looking statements in this news release include,
but are not limited to: the anticipated proceeds from the StarPoint Energy
Trust transaction; anticipated use of proceeds to pay down debt and purchase
shares pursuant to the company's Normal Course Issuer Bid program; the
projected geological and commercial risk associated with resource plays; and
continuous increases in production and reserves and decreases in costs over
multiple decades expected from resource plays and the anticipated production
growth, reserves growth and costs decreases associated with future development
of the company's resource play portfolio.
Readers are cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. By their nature, forward-
looking statements involve numerous assumptions, known and unknown 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
and financial results in future periods to differ materially from any
estimates or projections of future performance or results expressed or implied
by such forward-looking statements. These risks and uncertainties include,
among other things: volatility of oil and gas prices; fluctuations in currency
and interest rates; product supply and demand; market competition; risks
inherent in the company's marketing operations, including credit risks;
imprecision of reserves estimates and estimates of recoverable quantities of
oil, natural gas and liquids from resource plays and other sources not
currently classified as proved reserves; the company's ability to replace and
expand oil and gas reserves; its ability to generate sufficient cash flow from
operations to meet its current and future obligations; its ability to access
external sources of debt and equity capital; the timing and the costs of well
and pipeline construction; the company's ability to secure adequate product
transportation; changes in environmental and other regulations or the
interpretations of such regulations; political and economic conditions in the
countries in which the company operates, including Ecuador; the risk of war,
hostilities, civil insurrection and instability affecting countries in which
the company operates and terrorist threats; risks associated with existing and
potential future lawsuits and regulatory actions made against the company; and
other risks and uncertainties described from time to time in the reports and
filings made with securities regulatory authorities by EnCana. Although EnCana
believes that the expectations represented by such forward-looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct. Readers are cautioned that the foregoing list of important factors
is not exhaustive. Furthermore, the forward-looking statements contained in
this news release are made as of the date of this news release, and EnCana
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements contained in this
news release are expressly qualified by this cautionary statement.