Canadian Division | CUTBANK RIDGE & BIGHORNMike McAllister, Vice-President, Canadian Deep Basin Business Unit

The New Encana:the clear energy choice

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Canadian Deep Basin

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• ~1,800 producing wells

• 3,754 km of pipelines

• ~630 MMcf/d processing capacity

Canadian Deep BasinOverview

Land holdings• ~1,872,000 net acres • 2,925 net sections

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Cutbank Bighorn Montney

Key Resource Play ProductionMMcfe/d

Bighorn KRP

Cutbank KRP

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Canadian Deep BasinResource AreaMassive Resource Opportunity

Bighorn KRP: Cretaceous Cutbank KRP: Montney

Extensive Location Inventory

Montney Tight Gas Fairway ~ 475 Twp.*

100100

5050

150150

200200

200200

200200

150150

100100

200200

Montney

Subcrop

Edge

Deformation

Front

British Columbia

AlbertaMontney Shale Gas Fairway ~ 40 Twp.*

Total Resource

Reserves (Tcfe)

1P 2P 3P

2.36 3.32 3.97

Economic Contingent Resources (Tcfe)

1C 2C 3C

2.62 7.78 11.8

www.encana.com20mi

32km

*1 Twp ~ 23,040 acres

Montney Shale Gas Covers 40 Twps. Total estimated NGIP

87 Tcfe*

Montney Tight Gas Covers 475 Twps. Total mapped NGIP

900 Tcfe*

Montney Tight Gas/Shale Gas Play Total Resource

Highgraded Fairway: 170 Twp (~600 Tcf NGIP)

Bcf/sec

*Encana estimates

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GR_1GAPI0 200

2500

2550

2600

2650

2700

2750

2451.5

2754.0

MD

2451.5

2754.0

NPSS_1V/V0.45 -0.15

RHOB_2K/M31950 2950

EVAL_MONTNEY.PHIT_1V/V0.15 0

EVAL_MONTNEY.PHIT_1V/V0.15 0

EVAL_MONTNEY.VOL_UWAT_NEW_V/V0.15 0

GR Porosity

Upper Montney

Neutron/Porosity

Lower Montney

Por. & BVW

Cutbank Ridge Portfolio of Montney Assets

www.encana.comHydraulic Open-Hole Packers: Courtesy of WeatherfordHydraulic Open-Hole Packers: Courtesy of Weatherford

Cutbank Ridge

• Enhancing Horizontal Drilling Technology• Improved repeatability

• Upper Montney Sand Plug Design• Lower Montney OH Packer Design

• Increased HZ length & fracs per well (fpw)• Executed 2400m laterals with up to 14 fpw

• Leveraging experience into other plays

Cobramax Sand Plugs: Courtesy of Halliburton

P99P98P95P90

P80P70P60

P2P5P10

P20P30P40P50

P1

1.00 10.00 100.00Total Burnable Well Rate (mmcf/d - pressure normalized)

Potential B-A83-B Results

13mmcf/d

Total Gas Result

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Cutbank RidgeCost Improvement Initiatives

• Execution excellence

• Load leveled-operations

• Repeatable well designs

• Optimizing frac design

• Continuous improvement

• Drilled longer wells

• More intervals/well

• Economies of scale

• Lower service costs

• Net impact

• Reduced per well costs by $1 million in 2009

• Lowered supply cost by 48% since 2006

9.9 9.1

3.2

$0.65 $0.61

$1.50$0.95 $0.79

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8

46

9

0.00.51.01.52.02.53.03.5

2006Vertical

2006 2007 2008 2009 2010F0

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6

9

12Cost/Interval Intervals/well

Capital per Completed IntervalDawson Montney

$MM Intervals

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Bighorn Total Cretaceous Resource

Red RockKakwa

Resthaven

Carrot Ck.

Aurora

Ansell

460,000 Net Acres

Cretaceous NGIP (TCF)

Cretaceous Fairway

Deep Basin Cretaceous Tight Gas

•Total mapped NGIP 500 Tcfe*

•40 Tcfe* on Encana lands

*Encana estimate

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Bighorn Cretaceous Stack

Alberta

• Vertical wells• Focus on entire Cretaceous stack

• Up to 20+ zones per well

• High heat content, liquids rich

• Hz wells in thick sections of stack• Resource play within a resource play

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Gething5%

Bluesky2%

Dunvegan17%

Cadotte22%

Falher46%

Other8%

Kakwa NGIP

Distributed Temperature SensorVerifying Production from All Zones in Stack

• All pay zones contributing• Increased confidence in resource capture• Influence completion design

Gething9%

Bluesky15%

Dunvegan26%

Cadotte12%

Falher30%

Other8%

Average Flow Contribution

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Bighorn Cost Improvement Initiatives

• Execution excellence

• Load leveled-operations

• Concurrent completions

• Optimized frac designs

• Continuous improvement

• Lower service costs

• Net impact

• Reduced per well costs by $1 million in 2009

• Lowered supply cost by 30% since 2006

10.3 9.1

7.5

6.2 5.94.9 4.7

$5.03

$4.24 $4.08$3.57 $3.50

$0

$2

$4

$6

$8

2006 2007 2008 2009 2010F$0

$2

$4

$6

$8

Well Cost Supply Cost

Vertical Well - DC&T Capital

$MM $/MMBtu

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Bighorn – The Next Phase Horizontal Drilling

• Apply Cutbank KRP technology & experience

• Target thick sections of the stack • Dunvegan, Falher, Cadotte• >20 Bcf/Section NGIP

• AB deep gas royalty holiday• $3+ MM credit for wells >4,000m MD

• Encouraging results to dateKakwa 14-28 Falher HZ

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MMcfe/d

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Canadian Deep Basin Disciplined Growth

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2004 2005 2006 2007 2008 2009 2010F

Cutbank Bighorn Montney

MMcfe/d• Resource knowledge

• Resource capture

• Supply cost reduction

• Execution excellence

• Extensive Well Inventory

KRP Production Growth