Encana Corp. (NYSE: ECA) is increasing productivity in the Permian Basin, the Calgary, Alberta-based company said June 20.

Encana's cube development and advanced completions have led to a 20% increase in the company's Permian type curves and 700 new premium return locations, according to a company press release.

The newly calculated inventory is five times the quantity of locations Encana will drill in 2017 and brings the company's total premium return locations in the Permian to 3,450, the release said.

Encana said it plans to develop less than 30% of its Permian premium inventory through 2021.

"Through our focus on operational excellence, innovation and quality corporate returns we continue to make Encana more valuable and resilient," Doug Suttles, Encana president and CEO, said in a statement.

Encana's cube development approach targets multiple stacked pay zones from a single location to deliver significant value above ground as well as below ground in the reservoir.

Encana Cube Development Method

The method is delivering Encana drilling and completions savings of about $1.2 million per well compared to traditional single well development, the company said. As a result, Encana expects to hold its 2017 Permian well costs flat compared to 2016 on a like-for-like basis.

"We believe this [cube development] approach will become the industry standard for stacked-pay development," Suttles said.