OREANDA-NEWS. June 06, 2014. Encana Corporation ("Encana") (TSX:ECA)(NYSE:ECA) and PrairieSky Royalty Ltd. ("PrairieSky") (TSX:PSK) announced today the completion of the initial public offering of 52,000,000 common shares of PrairieSky (the "Offering") at an offering price of USD28.00 (the "Offering Price").

The Offering was conducted by way of a secondary offering by Encana, and Encana received aggregate gross proceeds of approximately USD 1.46 billion.

The underwriters have been granted an over-allotment option to purchase up to an additional 7,800,000 common shares at the Offering Price, exercisable in whole or in part, from time to time, until 30 days after closing of the Offering, which, if exercised in full, will increase the aggregate gross proceeds to Encana to approximately USD 1.67 billion.

As at closing of the Offering, Encana holds 60% of the common shares of PrairieSky. Encana's ownership level in PrairieSky will be reduced to 54% if the over-allotment option is exercised in full. The common shares will begin trading today on the Toronto Stock Exchange under the symbol PSK.

"The successful launch of the PrairieSky IPO marks the achievement of a major objective in our 2014 plan that was laid out at the time of our strategy announcement in November 2013. The creation of PrairieSky has unlocked value from our royalty business, which is a great example of the quality assets in our portfolio," says Doug Suttles, Encana President & CEO. "I am confident that PrairieSky's strong leadership team will capture the full potential of this unique asset base."

"This is an exciting day for our company, marking the creation of PrairieSky, owner of one of the largest and most concentrated independently-owned fee simple mineral title positions in Canada. I want to thank our staff, the members of my leadership team and PrairieSky's Board of Directors for their hard work to get us to this point. In addition, we thank Encana for their efforts in making PrairieSky a reality," adds Andrew Phillips, PrairieSky President & CEO. "It gives me great satisfaction to announce that PrairieSky is officially open for business."

The securities of PrairieSky have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of PrairieSky's shares in the United States.