Encana Corp., in North America’s largest energy land deal of the year, agreed to sell natural gas properties in northern Louisiana for $850 million to a venture run by GSO Capital Partners LP and GeoSouthern Haynesville LP.

The properties in the Haynesville shale include about 112,000 acres (45,000 hectares) of land held by leases as well as additional fee-mineral lands, according to a statement from the Calgary-based company Tuesday. The assets produced an average of 217 million cubic feet a day from 300 wells in the first half of the year, about nine percent of Encana’s output, and contain the equivalent of about 720 billion cubic feet of gas reserves, the company said.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.