Norsk Hydro ASA plans to acquire a 50% interest in the Chinook heavy oil discovery, offshore Brazil, from EnCana Corp., Calgary, (Toronto, NYSE: ECA) for approximately US$350 million. The sale is expected to close in the first quarter of 2006. Norsk Hydro will purchase all of the shares of an EnCana subsidiary holding the 50% interest in Block BM-C-7, in the Campos Basin. "The sale of our interests in the Chinook heavy oil discovery is a prime example of how our Frontier and International New Ventures division is able to generate pre-development cash value by applying its exploration and evaluation skills in select international locations," says Randy Eresman, EnCana's chief operating officer. "EnCana will continue to hold extensive interests in eight deep water exploration blocks offshore Brazil and is committed to evaluating those blocks with our partners. " EnCana and Kerr McGee Corp., its partner in the Chinook find, have drilled four appraisal wells on the discovery. During a three-day production test in September, the 3-ENC-3-RJS well flowed at rates up to 1,800 barrels of oil per day and the well encountered some 34 meters of net pay. EnCana has not booked any reserves associated with this discovery.