U.S. shale helps Canada's Encana grow

CALGARY, Alberta, July 24 (UPI) -- Canadian energy company Encana said Thursday it had a strong second quarter on the back of an acquisition of assets in the Eagle Ford shale area.

"We had a strong second quarter off of the back of a very good first quarter and we're meeting or exceeding our targets in every area of our business," Encana President and Chief Executive Officer Doug Suttles said in a statement.

The company in May spent $3.1 billion to acquire 45,500 acres in the Eagle Ford shale area in Texas. Describing it as a "bold strategic move," Encana said the 53,000 barrels of oil equivalent per day expected from Eagle Ford will almost double its current oil production capacity.

In announcing its second quarter performance, Encana said the 34,200 barrels of oil produced per day on average represents a 49 percent increase year-on-year.

Encana said it expects total production of liquid reserves this year to average out at around 88,500 bpd, up from the previous projected average of 70,500 bpd.

"Our second quarter results have us well positioned for further success in the second half of the year," Suttles stated.