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Deep Panuke Safety Risk Management

NS Energy R&D Forum | Antigonish | May 21, 2008

Gary Karasek, Lead Loss Control Engineer

EnCana Corporationwww.encana.com

Future Oriented InformationIn the interest of providing EnCana Corporation (“EnCana” or the “Company”) shareholders and potential investors with information regarding the Company and its subsidiaries, including management’s assessment of theCompany’s future plans and operations, certain statements and graphs throughout these presentations contain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995or “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking statements or information in these presentations include, but are not limited to, statements and graphs (collectively“statements”) with respect to: the projected ability of the Company to meet all its plans for the Deep Panuke project; the projected ability to meet all the target levels of safety for the Deep Panuke project; the projectedspecifications for the Deep Panuke’s production field centre; the projected ability to comply with the key environmental design criteria for the Deep Panuke project; the ability to fully implement the planned safety studies and keysafety features for the Deep Panuke project; and the various future-oriented conclusions derived from the projections and forecasts incorporated in these presentations.

You are cautioned not to place undue reliance on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which it is based will occur. By its nature, forward-looking informationinvolves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will notoccur. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the risks andother factors which could cause results to differ materially from those expressed in the forward-looking statements contained in these presentations include, but are not limited to: volatility of and assumptions regarding crude oiland natural gas prices, assumptions based upon the Company's current guidance, fluctuations in currency and interest rates, product supply and demand, market competition, risks inherent in the Company’s North American andforeign oil and gas and midstream operations, risks inherent in the Company’s marketing operations, including credit risks, imprecision of reserves estimates and estimates of recoverable quantities of oil, bitumen, natural gas andliquids from resource plays and other sources not currently classified as proved reserves, the ability of the Company and ConocoPhillips to successfully manage and operate the North American integrated heavy oil business andthe ability of the parties to obtain necessary regulatory approvals, refining and marketing margins, potential disruption or unexpected technical difficulties in developing new products and manufacturing processes, potential failureof new products to achieve acceptance in the market, unexpected cost increases or technical difficulties in constructing or modifying manufacturing or refining facilities, unexpected difficulties in manufacturing, transporting orrefining synthetic crude oil, risks associated with technology, the Company’s ability to replace and expand oil and gas reserves, the Company’s ability to either generate sufficient cash flow from operations to meet its current andfuture obligations or obtain external sources of debt and equity capital, general economic and business conditions, the Company’s ability to enter into or renew leases, the timing and costs of well and pipeline construction, theCompany’s ability to make capital investments and the amounts of capital investments, imprecision in estimating the timing, costs and levels of production and drilling, the results of exploration and development drilling,imprecision in estimates of future production capacity, the Company’s ability to secure adequate product transportation, uncertainty in the amounts and timing of royalty payments, imprecision in estimates of product sales,changes in royalty, tax, environmental and other laws or regulations or the interpretations of such laws or regulations, political and economic conditions in the countries in which the Company operates, the risk of war, hostilities,civil insurrection and instability affecting countries in which the Company operates and terrorist threats, risks associated with existing and potential future lawsuits and regulatory actions brought against the Company, and suchother risks and uncertainties described from time to time in the Company’s reports and filings with the Canadian securities authorities and the United States Securities and Exchange Commission. Accordingly, the Companycautions that events or circumstances could cause actual results to differ materially from those predicted. Statements relating to “reserves” or “resources” or “resource potential” are deemed to be forward-looking statements, asthey involve the implied assessment, based on certain estimates and assumptions that the resources and reserves and resource potential described exist in the quantities predicted or estimated, and can be profitably produced inthe future. You are cautioned that the foregoing list of important factors is not exhaustive. You are further cautioned not to place undue reliance on forward-looking statements contained in these presentations, which are made asof the date hereof, and, except as required by law, the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise. Theforward-looking statements contained in these presentations are expressly qualified by this cautionary statement.


Deep Panuke EHS Risk Management

Protect People, Environment, Assets.Follow EHS Risk Management Guidelines.Follow regulatory framework.Utilize in-house and external expertise and follow established industry best practices.


Deep Panuke Safety Risk Management

Ensure platform is designed and constructed in accordance with applicable CNSOPB Regulations.Meet or Exceed Target Levels of Safety for the project.Complete engineering design, safety studies and risk assessments. Update the Concept Safety Assessment (CSA).Demonstrate that the project safety risks have been reduced to as low as reasonably practicable (ALARP).


Target Levels of Safety and Risk Matrix

Risk Criteria TLS (/yr) Project GoalIndividual Risk Per Annum < 1.0 x 10-3 ALARPLoss of Key Safety FunctionsSingle Major Accident EventAll Major Accident Events

< 1.0 x 10-4

< 1.0 x 10-3

ALARP

Group Risk (for 68 POB)> 50 Fatalities < 2.72 x 10-4 ALARP

Quantitative vs. Qualitative

4Serious Categories

3Major

People

2Moderate

Environment

1Minor

Assets

ARemote

BUnlikely

CLikely

DFrequent

Reputation


CNSOPB Regulations

Installation Regulations Occupt. Health & Safety Regulations

Production & Conservation Regulations Drilling Regulations

Diving Regulation Spill & Debris Liability Regulations

Geophysical Operations Regulations

Installation Regulations Production & Conservation Regulations

Occupt. Health & Safety Regulations Drilling Regulations

Diving Regulation

Certificate of Fitness Regulations

Canada-Nova Scotia Offshore PetroleumResources Accord Implementation Act

Atlantic Energy Roundtable – initiative to modernizeGoal setting regulations are coming – Deep Panuke is ready


Topsides - Process Flow Diagram

Fuel Gas

Condensate toGas Turbines

Acid Gas/ Condensateto Injection

InletSeparator

WellFluids

Feed GasCompressor

2nd Stage Separator

Gas Sweetening (Amine) Unit

TEGContactor

Export GasCompressors

Export Gasto Shore

Condensate StabilizerSurge Tank

Acid GasCompression

StabilizerColumn

Low TempSeparator

Stabilized Condensate Surge Drum


Topsides Systems and Equipment

ProcessSeparatorsSour gas sweeteningGas dehydration Produced Water TreatmentCondensate StabilizationInlet and Export CompressionAcid Gas CompressionFlare and closed drains

Utilities & SupportTri Fuel Power GensSeawater / freshwaterHeating and cooling mediumCompressed air / NitrogenChemical injectionFuel gas / diesel / HelifuelOpen drains


Deep Panuke Subsea Layout


3D Model View - preliminaryProduction Field Centre


Planned Safety Studies to Support the CSA

Hazard Identification reviews (HAZID)Hazard and Operability studies (HAZOP)PFC Quantitative Risk assessmentFire and Gas Detection System reviewFire Protection Systems reviewFire Consequence analysisBlast Modeling studyHeat, Smoke and Gas Dispersion analysisEmergency System Survivability analysisEscape, Temporary Refuge, Evacuation & Rescue analysisFugitive Emissions study

Safety Integrity Levels (SIL) studyHazardous Area Classification reviewNoise studyHuman Factors analysisHealth Risk analysisAcoustically Induced Vibrations studySubsea Wells and Pipelines QRANon Hydrocarbon Hazards analysis (including Ship Collision study)Dropped Object studySafety Critical Elements Identification & Performance Standards


Key Safety Features

Safety incorporated in all aspects of the project design and operationFire & Gas Detection system including “line of sight” detectorsEmergency Shutdown / Blowdown SystemsActive and Passive Fire ProtectionDistributed Breathing Air System and portable breathing unitsFire/Blast wall protecting QuartersDedicated escape routes with 2 hour Temporary Safe RefugeLife Saving and evacuation equipment

Dedicated HVAC system for acid gas enclosureStandby Vessel at facility at all timesSafety Integrity Level (SIL) rated emergency control systemSafe operating proceduresRisk based maintenance and inspection programTechnical Training and competency program for all offshore personnelIndividual and team survival and emergency training

Thanks for your time.

Q&A to follow Risk Management session.

www.encana.com


PFC Specifications

Processing capacity: up to 300 MMscf/d sales gasTurndown capability: 40 MMscf/dWater handling: up to 40,000 bbl/d Condensate production: up to 2360 bbl/d Acid gas injection: up to 4.8 MMscf/dProducing wells: up to 8Onboard power: ~ 52MwPersonnel Onboard up to 100 w/o Hydrocarbons

up to 68 w/ Hydrocarbons


Key Environmental Design Criteria

100 Yr. Ambient Temperature (ºC) : -20 / 29.4100 Yr. Water Temperature (ºC) : -1.1 / 24.6Water Depth (m) : 44.7Sig. 100 Yr. Wave Height (m) : 13.7100 Yr. Max. Wave Height (m) : 25.6100 Yr. One Hour Wind speed (m/s): 41.6Design Life (Yr) - Hull/Subsea: 25

- Topsides: 20


Acid Gas Injection Features

Reduces the environmental footprint of acid gas flaring or incineration/scrubbing by injecting acid gas into dedicated subsea wellhead.Of all assessed alternatives for dealing with acid gas (sulphur recovery, flaring, incineration), injection is the most environmentally friendly option.Western Canada has been producing from sour gas reservoirs for decades. Canada is a leader in the safe production of sour gas and injection of acid gas.Acid gas injection avoids release of H2S though continuous flaring and also permits the capture and injection of CO2 greenhouse gasses.EnCana has installed and operates acid gas injection facilities in western Canada.Acid gas injection has been successfully implemented in offshore projects and is planned for several future sour gas projects.The potential for personnel to be in the area of a subsea release from the injection well and affected is in the order of 10E-8 , well below the negligible threshold of 10E-6 typically used by industry.


Deep Panuke Export Pipeline


Offshore Sour Gas Facilities

Location Operator Name Description PPM H2S %CO2

North Sea Total Elgin/Franklin PUQ, WH, Subsea 50 4North Sea Chevron Erskine PUQ, HT/HP 33 5.5North Sea BP Miller PUQ 300 25North Sea Nexen Buzzard PUQ, WH, Subsea 500Irish Sea Burlington Rivers PUQ, Subsea SignificantNorth Caspian Agip Kashagan Barge/Island 180,000North Caspian Tengizchevroil (TCO) At shore - swamp 160,000Persian Gulf South Pars LQ PU, WH Subsea 15,000 3Gulf of Mexico Shell Mobile Bay Wellhead 16,000Thailand British Gas Bongkot PUQ, Subsea, FSO N/ACanada EnCana Deep Panuke Jackup PUQ Subsea 2000 3.5

H2S Toxicity: STEL: 15 ppm IDLH: 100 ppm

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