OREANDA-NEWS. May 08, 2014. Encana Corporation ("Encana") (TSX:ECA)(NYSE:ECA) announced that PrairieSky Royalty Ltd. ("PrairieSky"), a wholly-owned subsidiary of Encana, has filed and obtained a receipt for an amended and restated preliminary prospectus ("Amended Prospectus") in respect of its initial public offering of common shares with the securities regulatory authorities of all provinces and territories in Canada (the "Offering"), which amends and restates the preliminary prospectus of PrairieSky filed on April 14, 2014.

The Offering is being conducted by way of a secondary offering by Encana, and the Amended Prospectus states that Encana proposes to sell 32,500,000 common shares at an indicative offering price of between USD 23.00 and USD 26.50 per common share for aggregate gross proceeds to Encana of approximately USD 747.5 million to USD 861.3 million. Following closing of the Offering, it is anticipated that Encana will own 75% of the common shares of PrairieSky (prior to any exercise of the over-allotment option).

Completion of the Offering is subject to, and conditional upon, the receipt of all necessary approvals, including regulatory approvals. Final decision of the Offering size and price, as well as closing of the Offering, is expected to occur in late May, 2014.

The Amended Prospectus containing important information relating to these securities, in addition to marketing materials relating to the Offering, have been filed with the securities commissions or similar authorities in each province and territory of Canada. The Amended Prospectus is still subject to completion or amendment. Copies of the Amended Prospectus and the related marketing materials are available on SEDAR at http://www.sedar.com or from the underwriters named in the Amended Prospectus. This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities until a receipt for the final prospectus has been issued.

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.