Carlyle/Riverstone to Purchase EnCana's Natural Gas Storage Business

New York, NY – The Carlyle/Riverstone Global Energy and Power Fund ("Carlyle/Riverstone"), an energy private equity fund managed by Riverstone Holdings LLC ("Riverstone") and The Carlyle Group ("Carlyle"), has agreed to purchase substantially all of the natural gas storage business of EnCana Corporation ("EnCana" - TSX, NYSE: ECA) for approximately US$1.5 billion.

EnCana's natural gas storage business is located in key gas producing and consuming regions and is linked to major North American gas transmission pipelines. EnCana Gas Storage has approximately 174 billion cubic feet (Bcf) of working gas capacity at five facilities in Alberta, California and Oklahoma. EnCana will retain the Hythe (10 Bcf) gas storage facility in northwest Alberta for its own use as this facility is integrated with EnCana’s upstream operations.

Gas storage interests being purchased from EnCana:

• AECO Hub - Suffield facility (85 Bcf), Alberta and Countess facility (40 Bcf), Alberta


• Wild Goose facility (24 Bcf), California


• Salt Plains facility (15 Bcf), Oklahoma


• Starks facility (27 Bcf in development), Louisiana

In January 2005, Carlyle/Riverstone made an investment in the Tulsa, Oklahoma–based midstream logistics and marketing company SemGroup, L.P. ("SemGroup"). SemGroup, through its Seminole Canada Gas Company and SemGas subsidiaries, will be partnering with Carlyle/Riverstone on the transaction. SemGroup’s role will be to assist in the gas marketing activities and transition services associated with the new business.

All components of the sale, with the exception of the Wild Goose facility, are expected to close in mid-April, subject to regulatory approvals. The sale of Wild Goose requires the review and approval of the California Public Utilities Commission and such review may take several months to complete.

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Riverstone Holdings LLC and The Carlyle Group

Riverstone Holdings LLC and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Funds. Riverstone, a New York-based energy and power focused private equity firm founded in 2000, has $6.0 billion under management. Riverstone conducts buyout and growth capital investments in the midstream, upstream, power, and oilfield service sectors of the energy industry. To date, the firm has committed $1.3 billion to 16 investments across each of these four sectors, involving $15 billion of assets. The Carlyle Group is a global private equity firm with $35 billion under management. Carlyle invests in buyouts, venture capital, real estate and leveraged finance in North America, Europe and Asia. Since 1987, the firm has invested $14.9 billion of equity in 439 transactions.

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SemGroup

SemGroup, L.P. is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. SemGroup businesses provide services for five energy commodities: crude oil, natural gas, natural gas liquids, refined products and asphalt. Its natural gas businesses include: SemGas, L.P. - a U.S. natural gas gathering, processing and storage business; SemCAMS – a gathering and processing business that is the largest licensed sour gas processor in Alberta, Canada; and Seminole Canada Gas Company – Canada’s leading independent natural gas marketing and energy asset management company. SemGroup is ranked No. 9 on Forbes magazine’s list of America’s Largest Private Companies. For additional information, visit www.semgrouplp.com/.

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EnCana Corporation

With an enterprise value of approximately US$45 billion, EnCana is one of North America’s leading natural gas producers, is among the largest holders of gas and oil resource lands onshore North America and is a technical and cost leader in the in-situ recovery of oilsands bitumen. EnCana delivers predictable, reliable, profitable growth from its portfolio of long-life resource plays situated in Canada and the United States. Contained in unconventional reservoirs, resource plays are large contiguous accumulations of hydrocarbons, located in thick or a really extensive deposits, that typically have lower geological and commercial development risk, lower average decline rates and very long producing lives compared to conventional plays. The application of technology to unlock the huge resource potential of these plays typically results in continuous increases in production and reserves and decreases in costs over multiple decades of resource play life. EnCana common shares trade on the Toronto and New York stock exchanges under the symbol ECA. For additional information, visit www.encana.com/.

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For further information:

Riverstone Holdings LLC
Pierre F. Lapeyre, Jr, Managing Director
David M. Leuschen, Managing Director
Andrew W. Ward, Managing Director
(212) 993-0076

The Carlyle Group
Chris Ullman
Investor Relations
(202) 729-5450

SemGroup, L.P.
Susan Dornblaser
(918) 524-8365

Susan Dornblaser
Dornblaser Consulting Inc.
(918) 745-0826

EnCana Corporation
Sheila McIntosh
Vice-President, Investor Relations
(403) 645-2194

Paul Gagne
Manager, Investor Relations
(403) 645-4737

Ryder McRitchie
Manager, Investor Relations
(403) 645-2007

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