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EnCana set for big oil sands output hike

CALGARY, Alberta, Nov. 7 (UPI) -- Canada's EnCana Corp., a major oil sands operator, aims to boost production to 500,000 barrels per day.

EnCana, which controls 1.2 million acres of western Canadian real estate, estimates it is sitting on 5 billion to 10 billion barrels of recoverable oil sands, an thick mud-like substance that must be injected with natural gas to become recoverable, the company said Monday.

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With crude oil prices hovering around $60 per barrel, the economics of oil sands development has become more profitable than ever.

EnCana benefits from owning both oil sands rights and substantial natural gas properties.

"We believe the combination of advances in thermal extraction technologies and the strengthening of world oil prices have set the stage for EnCana to generate significant long-term value for EnCana shareholders through accelerated oil sands investment and development," said Randy Eresman, EnCana's chief operating officer.

"With 1.2 million acres, EnCana is the largest owner of Canadian oil sands lands. Our lands contain an estimated 40 billion barrels of original oil in place. They rank among the very highest quality with estimated recoverable resources of between 5 billion and 10 billion barrels."

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