M E S S A G E F R O M T H E D E E P P A N U K E T E A M

D E E P P A N U K E P R O J E C T N E W S L E T T E R F I R S T G A S

Ongoing updates For information and to stay updated on the Deep Panuke project, please visit www.encana.com/deeppanuke

F I R S T G A S

First gas achieved at Deep Panuke!W elcome to the final edition of the Deep Panuke newsletter. We’re

pleased to share with you that first gas has been achieved at Encana Corporation’s Deep Panuke project, meaning that natural gas

production is now underway. First gas is a milestone for Deep Panuke, signalling the final transition from the construction phase to operations. To celebrate this milestone, we have assembled a special series of photos in this newsletter. Among the highlights are photos from the installation of the export pipeline, the drilling program, the transport of the production field centre and its installation in the field, the subsea program, the shore base, investments in education and training and research and development as well as environmental activities. Thank you for reading our newsletter. We hope that it has helped you to

stay updated on Deep Panuke activities through the project’s approval and construction phases. Moving forward, please visit the project’s pages on the Encana website at www.encana.com/deeppanuke where we’ll be sharing what is new at Deep Panuke. Among the new features is registration for Deep Panuke business opportunities. Once you register, you will automatically be notified whenever a new Deep Panuke business opportunity is posted to the web pages. You will also find updated information on our activities in Nova Scotia. The first gas milestone was achieved with the assistance of many individuals and organizations. Thank you to all! Enjoy this edition of the newsletter and remember to visit us at www.encana.com/deeppanuke to stay in touch.

Deep Panuke project infrastructure

Fig. 1 The Deep Panuke production field centre (PFC) offshore Nova Scotia flanked by the Skandi Skolten (l), a vessel used during installation of the PFC, and the Atlantic Condor (r) supply vessel operated by Atlantic Towing Limited.

Fig. 2 The PFC or platform is located on the Scotian Shelf in 44 m of water about 250 km southeast of Halifax. Four wells can produce natural gas at Deep Panuke. The gas is transported from the platform to shore via a subsea pipeline.

Fig. 4 At the terminus station for the Deep Panuke pipeline, natural gas is transferred to the Maritimes & Northeast Pipeline (M&NP) system for transport to market. In the background, the corridor for M&NP starts to wind its way across Northern Nova Scotia.

Fig. 3 The Deep Panuke pipeline makes landfall at Goldboro, NS where the onshore pipeline corridor stretches 3 km from the landfall point to the terminus station.

PHOTO

S: SBM (FIG

.1); PRISMA PRO

DUCTIONS (FIG

.2,3,4)

D E E P P A N U K E P R O J E C T N E W S L E T T E R

F I R S T G A S

PHO

TOS:

PRI

SMA

PRO

DUCT

IONS

(FIG

.1,2

,3);

ENC

ANA

(FIG

.4)

PHO

TOS:

PRI

SMA

PRO

DUCT

IONS

Export pipeline

Drilling program

Fig. 1 The Rowan Gorilla III (RGIII) drilling rig prepared four wells for production and drilled the disposal well for hydrogen sulphide and carbon dioxide removed from Deep Panuke gas.

Fig. 2 Loading the wellhead trees to the RGIII for installation during the drilling program. The trees control the wells at Deep Panuke.

Fig. 3 Rowan Companies drill floor crew during completion of the D-41 production well for Deep Panuke offshore Nova Scotia.

Fig. 4 The sun rises at Encana’s Deep Panuke offshore natural gas project during the stabilized flow test of the D-41 production well. A curtain of seawater directs radiant heat away from the RGIII drilling rig.

Fig. 5 The Deep Panuke pipeline makes landfall at Goldboro, NS, winched to shore from the Lorelay pipelay vessel.

Fig. 3 Coated sections of pipe at Sheet Harbour, NS. Once welded together onboard the Lorelay pipelay vessel, more than 14,000 sections make up the 173 km subsea pipeline from the offshore platform to landfall.

Fig. 2 A section of 22-inch diameter pipe leaves the pipe coating area. Each section is 12 metres long and weighs 2.5 tonnes prior to coating. The coating is up to 100 mm thick and helps provide extra weight for stability on the seabed.

Fig. 4 Sections of Deep Panuke pipe loaded to the hold of the Lorelay pipelay vessel at Sheet Harbour, NS.

Fig. 1 Heavy iron ore that is used as the aggregate for coating the pipeline arrives at Sheet Harbour, NS.

Fig. 6 Deep Panuke activity at Goldboro, NS. In the foreground at the wharf is equipment used to prepare for pipeline installation near the pipeline landfall point. In the background, the Lorelay pipelay vessel is installing the Deep Panuke export pipeline.

D E E P P A N U K E P R O J E C T N E W S L E T T E R

F I R S T G A S

Production Field Centre (PFC)

PFC transport to Nova Scotia

Subsea program

Fig. 3 These structures protect the wellhead trees on the seabed at Deep Panuke.

Fig. 1 Sections of flowlines await loading at Sheet Harbour, NS. Once welded together, flowlines transport natural gas in the Deep Panuke field to the PFC.

Fig. 5 PFC under tow from Mulgrave to installation site in the Deep Panuke field.

Fig. 2 The PFC was loaded to a barge at the dry dock for transit to a heavy lift vessel. Here the PFC and barge are under tow to the vessel.

Fig. 1 The Deep Panuke PFC awaits flooding in the dry dock. This view shows the spud cans.

Fig. 4 Giant spud cans attach to the legs of the platform and will anchor it to the seafloor.

Fig. 5 Construction of the PFC in the Middle East. The PFC is owned and operated by SBM on Encana’s behalf.

Fig. 1 A welder works on flare tower assembly at Aecon Fabco in Pictou, NS.

Fig. 2 The completed flare tower is approximately 100 metres tall.

Fig. 3 PFC on heavy lift vessel at Mulgrave, NS following its 23,000 km voyage from the Middle East.

Fig. 4 Unloaded from the heavy lift vessel, the PFC is quayside at the Strait Superport at Mulgrave, NS prior to installation in the field.

Fig. 2 Subsea 7’s Acergy Falcon vessel installing a flowline with the Rowan Gorilla III rig working on a Deep Panuke well.

Fig. 4 Tideway’s Rollingstone vessel places rocks at the PFC for erosion control.

Fig. 5 Part of the subsea program involved the installation of equipment on the seabed to complete the infrastructure for gathering natural gas. These j-tube extensions were some of the equipment installed.

Fig. 3 The flare tower is shipped in sections from Pictou, NS for integration with the PFC in the Middle East.

PHOTO

S: PRISMA PRO

DUCTIONS (FIG

.1,2,3); ENCANA (FIG.4,5)

PHOTO

S: ENCANA (FIG.1); SBM

(FIG.2,5); DO

CKWISE (FIG

.3); PRISMA PRO

DUCTIONS (FIG

.4)PHO

TOS: PRISM

A PRODUCTIO

NS (FIG.1,3); ENCANA (FIG

.2,4,5)

F I R S T G A S

D E E P P A N U K E P R O J E C T N E W S L E T T E R

F O R M O R E I N F O R M A T I O N

Contact Encana in Halifax for more information on the Deep Panuke project and other Encana activities:Phone: (902) 422.4500 Fax: (902) 425.2766E-mail: dpinfo@encana.comWeb: www.encana.com/deeppanukeMail: Suite 700, Founders Square, 1701 Hollis Street, Halifax, Nova Scotia B3J 3M8

Follow us on twitter.com/encana

Like us on facebook.com/encana

Watch us on youtube.com/encana

This newsletter is printed on 100% chlorine free and acid free paper that is manufactured using pulp certified by the Forest Stewardship Council (FSC).

Operations

In the environment

In the community

PHO

TOS:

PRI

SMA

PRO

DUCT

IONS

(FIG

.1,4

); E

NCAN

A (F

IG.2

,3)

PHO

TOS:

ENC

ANA

PHO

TOS:

ENC

ANA

(FIG

.1,3

); P

RISM

A PR

ODU

CTIO

NS (F

IG.2

)

Fig. 1 Lifeboat commissioning at the PFC. Secunda’s Ryan Leet supply vessel is on standby.

Fig. 2 At the shore base in Dartmouth, NS, loading supplies to the Atlantic Condor for transport to Deep Panuke, a transit of about 14 hours.

Fig. 3 Cougar Helicopters transports personnel to and from the Deep Panuke PFC or platform.

Fig. 3 Encana’s Code of Practice for Sable Island was developed as part of environmental protection planning at Deep Panuke. The code commits to protecting the uniqueness and integrity of Sable Island. Encana funds environmental research based on the island, including work by researchers from Acadia University to band and tag birds to track their interactions with offshore oil and gas facilities.

Fig. 1 Seabirds like this hitchhiking murre have been rescued under the Deep Panuke bird rescue protocol.

Fig. 2 Blue shark spotted at the Deep Panuke platform.

Fig. 4 Installation of the onshore section of pipeline for Deep Panuke required a wetlands recovery plan. Subsequent monitoring of the wetlands in the pipeline corridor shows they are well on their way to recovery. These photos show the before and after of pipeline installation at Deep Panuke.

Before

After

Fig. 1 Encana’s support for Ducks Unlimited included establishing this field trip site at the Dagger Woods Marsh near Antigonish, NS.

Fig. 2 Encana engineer Stephen Butler (l) meets students at the Halifax Career Fair.

Fig. 3 Encana engineer Christina Clarke stands on the helideck of the Deep Panuke platform. She is also a volunteer with the Techsploration program that encourages young women to consider careers in science, trades and technology. Encana supports Techsploration, and many other programs, as part of our commitment to education, training, research and development helping to advance the development of Nova Scotia’s offshore.

The Offshore Strategic Energy Agreement signed between the Province of Nova Scotia and Encana in 2006 outlined specific industrial and employment opportunities for Nova Scotians resulting from the development of Deep Panuke. Under the agreement, the Developing Skills Initiative was launched to provide opportunities for 10 Nova Scotians early in their careers to gain experience in the offshore oil and gas industry. Two participants pictured here, Christina Clarke and Stephen Butler, work for Encana’s Deep Panuke project. Other participants moved on to apply their skills to projects in Atlantic Canada and elsewhere. The initiative provided participants with relevant and marketable experience in the offshore oil and gas industry.

Fig. 4 Sea Life Celebration dolphin, depicting the various forms of sea life in the Deep Panuke area, was developed by artist Anne Camozzi as part of the Dolphins on Parade art fundraiser for Easter Seals in Nova Scotia. Encana adopted the dolphin to support Easter Seals. Encana works with organizations representing disadvantaged groups to share information on the offshore oil and gas industry.