Terry Halifax
Northern News Services

Inuvik (May 03/01) - A newly merged Canadian oil and gas company has just reported first quarterly earnings of nearly $300 million.

On April 5, Alberta Energy Company Ltd. (AEC) and PanCanadian merged to from EnCana Corporation --now the largest North American-based independent oil and gas company.

In separate meetings on April 4, AEC and PanCanadian shareholders met to vote on the merger with 91 and 81 per cent, respectively, voting in favour of the union.

"It came together very smoothly," said Alan Boras, spokesperson for EnCana.

With assets totaling $30 billion and interests around the globe, EnCana also holds exploration rights to 535,000 gross acres in the Mackenzie Delta and Alaska.

"Over the winter they shot a bunch of seismic, so that data is returned here and we'll look for an opportunity to drill next winter," he said.

Due to overlapping functions within the two companies, Boras said 300 of the 3,900 were laid off or took early pensions.

In the first quarter, EnCana reports a pro forma net income of $186 million, a cash flow of $765 million, 2,724 million cubic feet of natural gas sales per day -- up 21 per cent from last year, 246,846 barrels of crude oil and natural gas liquids per day -- down one per cent from last year.

The company also reported $1.3 billion in proceeds from assets.

"We had very, very strong production growth and financially we did very well," Boras said. "The company's in great financial shape."

"We have these two very strong Canadian companies that have joined forces to build an even-stronger competitor," Boras said. "Both at home in the North American market and over seas."