Encana To Split Into Two

Encana Corporation, Canada's biggest energy company announced on Sunday, May 11 2008 that it will split its operations into two divisions of Oil & Gas respectively.

Encana's decision comes at a time when oil prices are at a record high of $125/barrel. Amidst the high market prices, the Encana split is expected to create two different divisions of the company focusing on different market segments. According to many analysts, Encana's move comes at a right time because of market volatility in the Oil & Gas sectors.

Encana is expected to concentrate on its core Oil business in Alberta, exploring the Oil Sands projects and also in the Canadian Eastern coast to build new gas terminals.

Encana's share prices have increased more than 3 times since the start of 2008.