UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 40-F

(Check One)

[   ] Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

or

[X] Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2015

Commission file number 1-15226

ENCANA CORPORATION

(Exact name of Registrant as specified in its charter)

Suite 4400, 500 Centre Street S.E., P.O. Box 2850, Calgary, Alberta, Canada  T2P 2S5
(403) 645-2000
(Address and telephone number of Registrant’s principal executive offices)

CT Corporation System, 111 8th Avenue, New York, NY  10011
(212) 894-8940
(Name, address (including zip code) and telephone number
(including area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Securities registered or to be registered pursuant to Section 12(g) of the Act.      None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.       Debt Securities

For annual reports, indicate by check mark the information filed with this Form:

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 849,893,635.

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes X                     No    

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (s.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

Yes X                     No    

The Annual Report on Form 40-F shall be incorporated by reference into or as an exhibit to, as applicable, each of the registrant’s Registration Statements under the Securities Act of 1933:  Form F-3 (File No. 333-187492), Form S-8 (File Nos. 333-124218, 333-85598, 333-140856 and 333-188758) and Form F-10 (File No. 333-196927).

FORM 40-F

Principal Documents

The following documents have been filed as part of this Annual Report on Form 40-F, beginning on the following page:

(a)       Annual Information Form for the fiscal year ended December 31, 2015;

(b)       Management’s Discussion and Analysis for the fiscal year ended December 31, 2015; and

(c)       Consolidated Financial Statements for the fiscal year ended December 31, 2015, prepared in accordance with United States generally accepted accounting principles.

40-F1

This is the Annual Information Form of Encana Corporation (“Encana” or the “Company”) for the year ended December 31, 2015. In this Annual Information Form, unless otherwise specified or the context otherwise requires, reference to “Encana” or to the “Company” includes reference to subsidiaries of and partnership interests held by Encana Corporation and its subsidiaries.

The following volumetric measures may be abbreviated throughout this Annual Information Form: thousand cubic feet (“Mcf”); million cubic feet (“MMcf”) per day (“MMcf/d”); billion cubic feet (“Bcf”); trillion cubic feet (“Tcf”); barrel (“bbl”); thousand barrels (“Mbbls”) per day (“Mbbls/d”); million barrels (“MMbbls”); barrels of oil equivalent (“BOE”) per day (“BOE/d”); thousand barrels of oil equivalent (“MBOE”) per day (“MBOE/d”); million barrels of oil equivalent (“MMBOE”) per day (“MMBOE/d”); and million British thermal units (“MMBtu”).

The conversion of natural gas volumes to BOE is on the basis of six Mcf to one bbl. BOE is based on a generic energy equivalency conversion method primarily applicable at the burner tip and does not represent economic value equivalency at the wellhead. Readers are cautioned that BOE may be misleading, particularly if used in isolation.

The term “liquids” is used to represent oil, natural gas liquids (“NGLs”) and condensate. The term “liquids rich” is used to represent natural gas streams with associated liquids volumes. The term “play” encompasses resource plays, geological formations and conventional plays and the term “resource play” is used to describe an accumulation of hydrocarbons known to exist over a large areal expanse and/or thick vertical section, which, when compared to a conventional play, typically has a lower geological and/or commercial development risk and lower average decline rate.

All financial information included in this Annual Information Form is prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). The Company’s annual audited Consolidated Financial Statements for the year ended December 31, 2015, including required comparative information for 2014 and 2013, have been prepared in accordance with U.S. GAAP.

Readers are directed to the sections in this Annual Information Form titled “Note Regarding Forward-Looking Statements” and “Note Regarding Reserves Data and Other Oil and Gas Information”.

This Annual Information Form is available via the System for Electronic Documentation Analysis and Retrieval (“SEDAR”) at www.sedar.com and the Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”) at www.sec.gov.

Unless otherwise specified, all dollar amounts are expressed in U.S. dollars, all references to “dollars”, “$” or “US$” are to U.S. dollars and all references to “C$” are to Canadian dollars. All amounts are provided on a before tax basis, unless otherwise stated.

Encana Corporation is incorporated under the Canada Business Corporations Act (“CBCA”). Its executive and registered office is located at 4400, 500 Centre Street S.E., Calgary, Alberta, Canada T2P 2S5.

On May 12, 2015, the Company amended its articles of incorporation to redesignate the Company’s first and second preferred shares into a single class of preferred shares, designated as “Class A Preferred Shares”. See “Description of Share Capital – Class A Preferred Shares” in this Annual Information Form.

The following table presents the name, the percentage of voting securities owned and the jurisdiction of incorporation, continuance or formation of Encana’s principal subsidiaries and jointly controlled entities as at December 31, 2015. Each of the entities in the table below had total assets that exceeded 10 percent of Encana’s consolidated assets as at December 31, 2015 or annual revenues that exceeded 10 percent of Encana’s consolidated annual revenues for the year ended December 31, 2015.

The above table does not include all of the subsidiaries and jointly controlled entities of Encana. The total assets and annual revenues of unnamed subsidiaries and jointly controlled entities in aggregate did not exceed 20 percent of Encana’s consolidated assets as at December 31, 2015 or consolidated annual revenues for the year ended December 31, 2015, respectively.

As a general matter, Encana reorganizes its subsidiaries and jointly controlled entities as required to maintain proper alignment of its business, operating and management structures.

Encana is a leading North American energy producer that is focused on developing its strong portfolio of diverse resource plays producing natural gas, oil and NGLs. Encana’s operations also include the marketing of natural gas, oil and NGLs. All of Encana’s reserves and production are located in North America.

As at December 31, 2015, Encana’s operating and reportable segments were: (i) Canadian Operations; (ii) USA Operations; and (iii) Market Optimization.

Corporate and Other is not an operating segment and mainly includes unrealized gains or losses recorded on derivative financial instruments. Once the instruments are settled, the realized gains and losses are recorded in the operating segment to which the derivative instruments relate.

Significant events which contributed to the development of Encana’s business over the last three years included the following:

2015

2014

2013

The following map outlines the location of Encana’s North American landholdings and plays as at December 31, 2015.

In 2015, DJ Basin and San Juan were realigned to Other Upstream Operations resulting from the Company’s continued focus on accelerating growth from a limited number of core, high return and scalable projects.  Previously, DJ Basin and San Juan were presented as growth assets. Encana uses the term core asset to describe the Company’s current capital investment strategy in relation to the current price environment and the funding of a limited number of core plays.  As at December 31, 2015, Encana’s core assets include Eagle Ford, Permian, Montney and Duvernay.

Encana’s operations are focused on exploiting high return and scalable natural gas and oil formations. The Company’s operations are primarily located in Canada and the U.S.  All of Encana’s reserves and production are located in North America.

Encana is committed to growing long-term shareholder value through a disciplined focus on generating profitable growth. The Company’s key objectives include:

·                 Exercising a disciplined capital allocation strategy

·                 Maintaining portfolio flexibility to respond to changing market conditions

·                 Maximizing profitability through operational efficiencies and reducing costs

·                 Preserving balance sheet strength

The Company has a history of identifying and entering into strategic prospective plays and leveraging technology to unlock resources and build the underlying productive capacity at a low cost. Encana continually strives to improve operating efficiencies, foster technological innovation and lower its cost structures while reducing its environmental footprint through play optimization. The Company’s resource play hub model is a manufacturing-style development approach, which utilizes highly integrated production facilities to develop resources by drilling multiple wells from central pad sites. Capital and operating efficiencies are achieved across Encana’s diverse portfolio through repeatable operations, optimizing equipment and processes and by applying continuous improvement techniques.

Encana’s capital investment strategy is focused on accelerating growth from a limited number of core, high return and scalable projects, while balancing the commodity portfolio and optimizing production performance from the remainder of the Company’s resource base.

The Canadian Operations includes the exploration for, development of, and production of natural gas, oil and NGLs and other related activities within Canada. Plays in Canada include: Montney in northern British Columbia and northwest Alberta; Duvernay in west central Alberta; and Other Upstream Operations including Wheatland in southern Alberta, Deep Panuke located offshore Nova Scotia and Other and emerging. Other and emerging primarily includes Horn River in northeast British Columbia. Other Upstream Operations include plays that are not part of Encana’s current strategic focus.

In 2015, Montney was realigned to include the Cadomin/Doig and Granite Wash/Doig areas that were previously included in Other and emerging within Other Upstream Operations. Accordingly, comparative information has also been realigned. In addition, Clearwater was renamed Wheatland.

In 2015, the Canadian Operations had total capital investment of approximately $380 million and drilled approximately 135 net wells. Production after royalties averaged approximately 971 MMcf/d of natural gas, approximately 5.6 Mbbls/d of oil, and approximately 22.8 Mbbls/d of NGLs. At December 31, 2015, the Canadian Operations had an established land position in Canada of approximately 3.7 million gross acres (2.5 million net acres) including approximately 2.1 million gross undeveloped acres (1.4 million net undeveloped acres).

The tables on the following page summarize the Canadian Operations landholdings, producing wells and daily production as at and for the periods indicated.

(1)          Figures exclude wells capable of producing, but not producing.

(1)          Montney has been realigned to include certain properties which were previously reported in Other and emerging.

(2)          During 2015, Encana divested of certain properties in Wheatland.

(3)          During 2014, Encana divested its Bighorn properties and investment in PrairieSky.

(1)          Montney has been realigned to include certain properties which were previously reported in Other and emerging.

(2)          During 2015, Encana divested of certain properties in Wheatland.

(3)          During 2014, Encana divested its Bighorn properties and investment in PrairieSky.

Plays and Other Activities in the Canadian Operations

Montney

Montney is a play located in the Canadian Rocky Mountain foothills, which extends from southwest of Dawson Creek, in northern British Columbia to northwest Alberta. Producing horizons include Montney, Cadomin, Doig and Granite Wash formations with the current focus of development on the Montney formation. In 2015, total production after royalties from the play averaged approximately 723 MMcf/d of natural gas and approximately 22.5 Mbbls/d of oil and NGLs. As at December 31, 2015, Encana controlled approximately 1,466,000 gross acres (948,000 net acres) in the play.

The focus of development is on exploiting natural gas and condensate in the deep basin of the Montney formation within the play, of which Encana controlled approximately 809,000 gross acres (525,000 net acres), including 504,000 gross undeveloped acres (307,000 net undeveloped acres) at December 31, 2015. The Montney formation is being developed exclusively with horizontal well technology. In 2015, Encana drilled approximately 15 net horizontal wells in the area and production after royalties averaged approximately 619 MMcf/d of natural gas and approximately 22.5 Mbbls/d of oil and NGLs. Significant improvements have been achieved with respect to horizontal well completions with the application of multi-stage hydraulic fracturing. Since the first horizontal well completion in the area in 2006, Encana has continued to apply advanced technologies to reduce the overall development costs by approximately 77 percent on a completed interval basis. During 2015, Encana continued to focus on drilling longer wells with lateral lengths ranging from approximately 4,300 to 11,700 feet and tighter completion spacing ranging from approximately 66 to 84 feet. As Encana continues to optimize well and completion designs, lateral lengths drilled, stage and well spacing may change.

Encana has a partnership agreement with Mitsubishi to jointly develop certain lands predominately in the Montney. Under the agreement, Mitsubishi agreed to invest approximately C$2.9 billion for its 40 percent partnership interest in the CRP, of which approximately C$2.1 billion has been received as of December 31, 2015. In addition to its 40 percent of the CRP’s future capital funding investment, Mitsubishi is required to invest the remaining amount of approximately C$0.8 billion within an expected five year development plan of the area, thereby reducing Encana’s capital funding commitment to 30 percent of the total expected capital investment over that development plan. Encana proportionately consolidates its 60 percent interest in the CRP, including reserves.

As at December 31, 2015, Encana has natural gas processing capacity of approximately 745 MMcf/d with eight plants located in Alberta and British Columbia under contract with third parties. The contracted capacities range from 100 MMcf/d to 240 MMcf/d and have varying terms ranging from two to 18 years. In addition to the contracted capacity, Encana owns or has an ownership interest in natural gas processing capacity of approximately 177 MMcf/d net to Encana at three plants located in Alberta, with the plant capacities ranging from 115 MMcf/d to 209 MMcf/d.

Encana has access to gathering and compression capacity of 1,140 MMcf/d under contract with third parties that have remaining terms from 16 to 30 years and are located in the Dawson area of northeastern British Columbia and northwest Alberta. This includes gathering and compression that was divested in 2015 by Encana along with the CRP to Veresen Midstream Partnership LP (“VMLP”) as described under “Recent Developments” in this Annual Information Form. Encana also owns gathering and compression capacity of approximately 148 MMcf/d in northwest Alberta.

In addition, Encana along with the CRP expects to have access to compression and processing facilities with capacity of approximately 600 MMcf/d (net 360 MMcf/d to Encana) that are currently under construction by VMLP, and are expected to be completed in the latter half of 2017.

Duvernay

Duvernay is a play located in west central Alberta and includes properties that are primarily located in the Duvernay formation. As at December 31, 2015, Encana controlled approximately 669,000 gross acres (389,000 net acres) in the play.

The focus of development is on exploiting shale gas and condensate in the Duvernay formation within the play, of which Encana controlled approximately 586,000 gross acres (354,000 net acres), including 509,000 gross undeveloped acres (317,000 net undeveloped acres) at December 31, 2015. Encana has continued to develop the play with horizontal well technology using pad drilling in the northern part of the formation. Encana is currently achieving significant improvements in drilling costs and cycle times through application of its resource play hub model and continuing to develop long-term take-away capacity.  In 2015, Encana drilled approximately 15 net wells in the area and production after royalties averaged approximately 27 MMcf/d of natural gas and approximately 4.8 Mbbls/d of oil and NGLs. During 2015, Encana drilled wells with lateral length ranging from approximately 5,900 to 9,500 feet with completion spacing of approximately 60 feet. As Encana continues to optimize well and completion designs, lateral lengths drilled, stage and well spacing may change.

Encana has an agreement with a subsidiary of PetroChina Company Limited (“PetroChina”) to jointly explore and develop certain Duvernay lands. Under the agreement, PetroChina agreed to invest approximately C$2.18 billion for a 49.9 percent working interest in the lands. PetroChina has invested approximately C$1.93 billion as of December 31, 2015 and is expected to further invest approximately C$250 million over the remaining commitment period that expires in 2020, which will be used to fund half of Encana’s capital commitment.

Encana holds an approximate 50.1 percent ownership in two Simonette gas plants and the associated gas gathering and compression, which has a combined natural gas processing capacity of 105 MMcf/d (net 53 MMcf/d to Encana) and NGLs production capacity of 24.4 Mbbls/d (net 12.2 Mbbls/d to Encana).

Other Upstream Operations

Wheatland

Wheatland is a play located in southern Alberta and includes producing horizons such as the Lethbridge and Horseshoe Canyon formations, shallow sands formations including the Belly River and the Medicine Hat and deeper natural gas formations including the Glauconitic and the Mannville formations. In 2015, Encana drilled approximately 105 net natural gas wells. Production after royalties averaged approximately 86 MMcf/d of natural gas and approximately 0.9 Mbbls/d of oil and NGLs. As at December 31, 2015, Encana controlled approximately 1,046,000 gross acres (803,000 net acres) in the play.

Development has focused on exploiting natural gas along the eastern edge of the Horseshoe Canyon Fairway, which is integrated with shallower sands. Encana has historically used an integrated wellbore strategy to exploit deeper targets within the area. At December 31, 2015, Encana controlled approximately 507,000 gross acres (495,000 net acres) in the Horseshoe Canyon Fairway.

In 2015, Encana divested of approximately 1.4 million gross acres (1.2 million net acres) to Ember Resources Inc. for approximately C$557 million, after closing adjustments, as described under “Recent Developments” in this Annual Information Form.

In 2015, Encana and a subsidiary of Toyota Tsusho Corporation (“Toyota Tsusho”) terminated an agreement whereby Toyota Tsusho would invest approximately C$600 million to acquire a 32.5 percent gross overriding royalty interest in certain natural gas production from the wells drilled under the agreement. Prior to its termination in 2015, Toyota Tsusho had invested C$325 million under the agreement.

Deep Panuke

Encana is the owner and operator of the Deep Panuke gas field located offshore Nova Scotia, which is approximately 250 kilometres southeast of Halifax on the Scotian shelf. Natural gas from Deep Panuke is produced and processed by an offshore Production Field Centre (“PFC”) which is designed to process up to 300 MMcf/d. The PFC is under a lease arrangement which has an initial term that expires in 2021, with the option to extend the lease for 12 successive one-year terms at fixed prices after the initial lease term. Produced gas is transported to Goldboro, Nova Scotia, via subsea pipeline which interconnects with the Maritimes & Northeast Pipeline, where the natural gas is ultimately transported to markets in eastern Canada and northeastern U.S.

In 2015, natural gas production after royalties averaged approximately 63 MMcf/d. Encana is operating Deep Panuke under a seasonal production strategy. Encana sells all natural gas produced from Deep Panuke under a long-term physical sales contract at the prevailing market prices in that region. At December 31, 2015, Encana controlled approximately 41,000 gross acres (30,000 net acres) in Nova Scotia. Encana operates five of its six licenses in these areas.

Other Activity

Horn River is located in northeast British Columbia. The focus of development has been in the Horn River Basin shales (Muskwa, Otter Park and Evie), which are upwards of 500 feet thick. In 2015, Encana’s natural gas production after royalties averaged approximately 69 MMcf/d. As at December 31, 2015, Encana had approximately 91 gross producing horizontal wells (46 net producing horizontal wells) within the development area of the Horn River Basin shales. As at December 31, 2015, Encana controlled approximately 217,000 gross acres (173,000 net acres), which includes 177,000 gross undeveloped acres (152,000 net undeveloped acres) in the Horn River Basin shales. Encana owns natural gas compression capacity in Horn River of approximately 570 MMcf/d (net 285 MMcf/d to Encana) at various facilities in the area. Encana has a processing arrangement with a third party related to a planned expansion of the Cabin natural gas processing plant, for which commissioning and expansion was suspended in 2012.

The USA Operations includes the exploration for, development of, and production of natural gas, oil and NGLs and other related activities within the U.S. Plays in the U.S. include: Eagle Ford in south Texas; Permian in west Texas; and Other Upstream Operations including DJ Basin in northern Colorado, San Juan in northwest New Mexico, Piceance in northwest Colorado and Other and emerging. Other and emerging primarily includes Tuscaloosa Marine Shale in east Louisiana and west Mississippi. Other Upstream Operations include plays that are not part of Encana’s current strategic focus.

In 2015, DJ Basin and San Juan were realigned to Other Upstream Operations resulting from the Company’s continued focus on a disciplined capital allocation strategy. Accordingly, comparative information has also been realigned. This realignment is further described under “Narrative Description of the Business” in this Annual Information Form.

During 2015, Encana divested of approximately 112,000 net acres in Haynesville located in northern Louisiana for proceeds of approximately $769 million, after closing adjustments, as described under “Recent Developments” in this Annual Information Form.

In 2015, the USA Operations had total capital investment of approximately $1,847 million and drilled approximately 265 net wells. Production after royalties averaged approximately 664 MMcf/d of natural gas, approximately 81.4 Mbbls/d of oil, and approximately 23.6 Mbbls/d of NGLs. At December 31, 2015, the USA Operations had an established land position of approximately 1.8 million gross acres (1.4 million net acres) including approximately 1.2 million gross undeveloped acres (0.9 million net undeveloped acres).

The following tables summarize the USA Operations landholdings, producing wells and daily production as at and for the periods indicated.

(1)           Figures exclude wells capable of producing, but not producing.

(1) During 2015, Encana divested of the Haynesville properties.

(2) During 2014, Encana divested of the Jonah properties and certain properties in East Texas.

(1) During 2015, Encana divested of the Haynesville properties.

(2) During 2014, Encana divested of the Jonah properties and certain properties in East Texas.

Plays and Other Activities in the USA Operations

Eagle Ford

Eagle Ford is a tight oil play located in south Texas in the Karnes, Wilson and Atascosa counties. The focus is on the development of the thickest portion of the Eagle Ford shale in the Karnes Trough, where Encana holds a largely contiguous position. At December 31, 2015, Encana controlled approximately 43,000 gross acres (41,000 net acres) in the play. In 2015, Encana drilled approximately 65 net wells in the area and production after royalties averaged approximately 37.0 Mbbls/d of oil, approximately 44 MMcf/d of natural gas and approximately 5.8 Mbbls/d of NGLs.

Encana is developing the play using horizontal wells with lateral lengths ranging from approximately 3,300 to 7,000 feet with an average measured depth of approximately 17,500 feet and tighter cluster spacing ranging from 20 to 36 feet. As Encana continues to optimize well and completion designs, lateral lengths drilled, cluster and well spacing may change. Since acquiring the play in 2014, Encana has actively optimized well design through its resource play hub model, resulting in reduced drilling costs of approximately 41 percent.

Oil and natural gas production is gathered at various production facilities with combined capacities of approximately 200 MMbbl/d for oil production and 271 MMcf/d for natural gas production. The majority of the oil is subsequently transported to sales points by pipeline or trucked from facilities depending on the sales contract. Encana has dedicated approximately 20 MMcf/d to 42 MMcf/d of production under a commitment for natural gas gathering with a remaining term of approximately five years. In addition, Encana has access to natural gas processing capacity of up to approximately 72 MMcf/d with a third party that has no volume commitment, with remaining terms of approximately six years.

Permian

Permian is located in west Texas in the Midland, Martin, Howard and Glasscock counties. The focus is on the development of the Clearfork, Spraberry, Wolfcamp, Cline, Strawn, Atoka and Mississippian formations, in the Midland basin, where Encana holds a large contiguous position. At December 31, 2015, Encana controlled approximately 147,000 gross acres (141,000 net acres) in the play. The properties are characterized by an extensive production history from vertical drilling and development and mature infrastructure, with multiple producing horizons spanning over 3,000 feet to 4,000 feet of stratigraphy (also referred to as “stacked pay zones”). The multiple stacked pay zones can accommodate multiple completions in a single wellbore with the potential for both vertical and horizontal drilling. In 2015, Encana drilled 108 vertical net wells and 69 horizontal net wells in the area. In 2015, production after royalties averaged approximately 24.5 Mbbls/d of oil, approximately 44 MMcf/d of natural gas and approximately 8.3 Mbbls/d of NGLs.

With exposure to 11 potential productive horizons, Encana has focused development using horizontal well technology. During 2015, Encana utilized multi-well horizontal pad drilling in order to maximize resource recovery and minimize the development footprint. In addition, Encana focused on drilling longer horizontal wells with lateral lengths ranging from approximately 4,200 to 10,000 feet at a measured average depth of approximately 16,500 feet and tighter cluster spacing ranging from approximately 47 to 53 feet. As Encana continues to optimize well and completion designs, lateral lengths drilled, stage and well spacing may change. During 2015, Encana’s multi-well horizontal drilling strategy has reduced drilling costs by approximately 15 percent.

Oil and natural gas facilities include field gathering systems, storage batteries, saltwater disposal systems, separation equipment and pumping units. In addition, the play has an established pipeline infrastructure to transport oil from wellhead to tank batteries which is subsequently transported by the gatherer or purchaser via pipeline or truck. In 2015, Encana agreed to dedicate the majority of its acreage and associated oil production under a pipeline gathering agreement that has an initial term of seven years, with an option to extend the initial term for an additional seven years. In the event of pipeline capacity constraints, Encana’s oil production is trucked by a third party. Natural gas is gathered by Encana and transported to the purchaser’s meter and pipeline interconnection point.

Other Upstream Operations

DJ Basin

DJ Basin is a liquids rich play located in northern Colorado. The focus is on the development of the Codell, J-Sand and the Niobrara of the Wattenberg field. In 2015, Encana drilled approximately 17 net horizontal wells with an average lateral length of approximately 4,400 feet. Encana has initiated pilot testing various well spacing and completion combinations in order to maximize resource recovery and minimize the development footprint, of which the results are pending. In 2015, production after royalties averaged approximately 55 MMcf/d of natural gas, approximately 9.4 Mbbls/d of oil and approximately 5.5 Mbbls/d of NGLs. At December 31, 2015, Encana controlled approximately 56,000 gross acres (51,000 net acres) in the play.

Encana is a party to joint venture agreements whereby its partner earns 50 percent of Encana’s working interest in certain oil and natural gas wells to be drilled at Encana’s discretion in DJ Basin. The joint venture partner will pay its share of costs plus an additional carry amount to participate in the wells drilled, which is determined with reference to certain benchmark prices and the nature of the well drilled. The agreement has a remaining term of 10 years with the potential for additional five one-year extensions thereafter if a specified number of wells have not been drilled. Either party has an ability to suspend certain of its obligations under the agreement in the event natural gas and oil benchmark prices fall below a specified threshold. In 2015, the joint venture partner suspended its funding of drilling for wells due to the current weak commodity price environment. To date, Encana has received $256 million under the terms of the agreements. In 2015, third party funds were used to drill all 17 net horizontal wells in the play.

Encana has dedicated natural gas production for gathering and processing under a contract with a third party that has no volume commitment. The third party’s total plant capacity is approximately 625 MMcf/d. Encana was constructing a central liquids gathering facility near Erie, Colorado that is anticipated to have approximately 22.0 Mbbls/d of capacity. Construction of the facility temporarily ceased as a result of the announced agreement to sell properties in DJ Basin as discussed below.

On October 8, 2015, Encana entered into an agreement to sell properties in DJ Basin for an announced purchase price of approximately $900 million, before post-closing and other adjustments. The transaction is expected to close by the end of the second quarter of 2016, and is subject to satisfaction of certain closing conditions.

San Juan

San Juan is a light sweet oil play located in the San Juan Basin in northwest New Mexico. The focus of development is on exploiting liquids in the Gallup sandstone and Mancos silt formations within the play. Encana has established a significant land position in the play and continues to delineate the acreage held. Encana drilled approximately one net horizontal well in 2015, with a lateral length of approximately 6,000 feet and a vertical depth of approximately 5,500 feet. In 2015, production after royalties averaged approximately 4.8 Mbbls/d of oil, approximately 13 MMcf/d of natural gas and approximately 1.4 Mbbls/d of NGLs. At December 31, 2015, Encana controlled approximately 354,000 gross acres (206,000 net acres) which includes 296,000 gross undeveloped acres (170,000 net undeveloped acres). Encana has dedicated natural gas production under an agreement with access to processing capacity of up to approximately 50 MMcf/d with a third party.

Piceance

Piceance is a play located in northwest Colorado. The focus of development is on exploiting natural gas in the Williams Fork, Niobrara and Mancos formations within the play. The Williams Fork formation is characterized by thick natural gas accumulations and the Niobrara and Mancos formations are characterized by thick shales which are predominant throughout the basin. In 2015, production after royalties averaged approximately 320 MMcf/d of natural gas, approximately 1.2 Mbbls/d of oil and approximately 2.3 Mbbls/d of NGLs. At December 31, 2015, Encana controlled approximately 795,000 gross acres (717,000 net acres), which includes 517,000 gross undeveloped acres (461,000 net undeveloped acres).

Encana has a long-term joint venture agreement with a subsidiary of Nucor Corporation (“Nucor”) under which Nucor will earn 50 percent of Encana’s working interest in certain natural gas wells to be drilled in Piceance. Under the terms of the agreement, Nucor will carry Encana for approximately $750 million, of which approximately $24 million has been received as of December 31, 2015. Nucor will further invest the remaining amount over the long-term commitment period. The joint venture partner will pay its share of costs plus an additional carry amount to participate in wells drilled, which is based on pre-determined percentage allocations partially indexed to natural gas prices. It also contains certain limitations on the minimum and maximum number of wells that may be drilled in any calendar year over the duration of the agreement. Either party may suspend certain of its obligations under the agreement if the average price of natural gas falls below a pre-determined threshold but neither party has a unilateral right to terminate the agreement. Since December 2013, Encana and Nucor jointly agreed to postpone the drilling of natural gas wells due to the current weak natural gas price environment.

In addition, Encana has other existing joint venture arrangements to develop portions of the Piceance. To date, Encana has drilled approximately 271 net wells under the agreements, primarily using third party funds. The pace of development is determined in accordance with the joint venture agreements.

Encana has natural gas gathering capacity under volume commitments that vary each year and range between approximately 132 MMcf/d to 370 MMcf/d with a third party that have remaining terms of approximately 11 years. Encana has access to natural gas gathering capacity of up to approximately 850 MMcf/d and natural gas processing capacity of up to approximately 650 MMcf/d with a third party that have no volume commitments with remaining terms of approximately eight years. Encana also has a NGLs transportation commitment with a third party of approximately 6.0 Mbbls/d for production from San Juan and Piceance, with a remaining term of approximately nine years. In addition, Encana owns natural gas gathering and compression capacity of approximately 337 MMcf/d and a natural gas processing plant with capacity of approximately 55 MMcf/d.

Other Activity

The Tuscaloosa Marine Shale is an oil play located in east Louisiana and west Mississippi and is currently under appraisal. Encana has established a significant land position in the core of the play and is focused on maximizing oil recovery in the Tuscaloosa Marine Shale formation. In 2015, Encana drilled approximately three net horizontal wells with an average lateral length of approximately 7,800 feet. Production after royalties averaged approximately 4.4 Mbbls/d of oil. At December 31, 2015, Encana controlled approximately 325,000 gross acres (220,000 net acres), which includes 295,000 gross undeveloped acres (196,000 net undeveloped acres).

Market Optimization activities are managed by Encana’s Midstream, Marketing & Fundamentals team, which is responsible for the sale of the Company’s proprietary production and enhancing the associated netback price. Market Optimization activities include third party purchases and sales of product to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification. In conjunction with certain divestitures, Encana has agreed to market and transport certain portions of the acquirer’s production with remaining terms of less than five years.

Encana’s produced natural gas, oil and NGLs are primarily marketed to refiners, local distributing companies, energy marketing companies and electronic exchanges. Prices received by Encana are based primarily upon prevailing index prices in the region in which it is sold. Prices are impacted by regional and global supply and demand and by competing fuels in such markets.

The majority of Encana’s natural gas production is sold under short-term delivery contracts with less than 12 months in duration, at the relevant market price at the time the product is sold. Encana sells all natural gas produced from Deep Panuke under a long-term physical sales contract at prevailing market prices in that region. Encana’s oil production is sold under contracts with terms that range up to five years. Prices received by Encana are based primarily upon the prevailing index prices in the relevant region where the product is sold. Encana’s NGLs production is sold under contracts with terms that range up to 12 years, or under dedication arrangements at the relevant market price at the time the product is sold.

As at December 31, 2015, Encana had no material long-term fixed price physical sales contracts or delivery contracts for produced natural gas, oil or NGLs.

Encana seeks to mitigate the market risk associated with future cash flows by entering into various risk management contracts relating to produced natural gas, oil, NGLs and power. Details of those contracts related to Encana’s various risk management positions are found in Note 24 to Encana’s audited Consolidated Financial Statements for the year ended December 31, 2015, which are available via SEDAR at www.sedar.com and EDGAR at www.sec.gov.

Encana is required to provide reserves data prepared in accordance with Canadian securities regulatory requirements, specifically National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Certain reserves and oil and gas information in accordance with Canadian disclosure requirements are contained in Appendix A – Canadian Protocol Disclosure of Reserves Data and Other Oil and Gas Information. Additional disclosure required by NI 51-101 is included in the preceding sections of this Annual Information Form, and referenced accordingly herein. Select supplemental reserves and other oil and gas information disclosure is provided in accordance with U.S. disclosure requirements in Appendix D – U.S. Protocol Disclosure of Reserves Data and Other Oil and Gas Information. See “Note Regarding Reserves Data and Other Oil and Gas Information”.

The practice of preparing production and reserve quantities data under Canadian disclosure requirements (NI 51-101) differs from the U.S. reporting requirements. The primary differences between the two reporting requirements include:

Since 2002, Encana has retained independent qualified reserves evaluators (“IQREs”) to evaluate and prepare reports on 100 percent of Encana’s natural gas, oil and NGLs reserves annually. In 2015, Encana’s Canadian reserves were evaluated by McDaniel & Associates Consultants Ltd. and GLJ Petroleum Consultants Ltd., and its U.S. reserves were evaluated by Netherland, Sewell & Associates, Inc.

Encana’s Chief, Reservoir Engineering and seven other staff under this individual’s direction oversee the preparation of the reserves estimates by the IQREs. This internal staff consisted of six engineers, five of whom have professional designations, with a combined relevant experience of over 100 years. The engineering staff were all members of the appropriate professional associations as well as being members of various industry associations such as the Society of Petroleum Engineers and the Society of Petroleum Evaluation Engineers.

Encana has a Reserves Committee composed of independent board members that review the qualifications and appointment of the IQREs. The Reserves Committee also reviews the procedures for providing information to the IQREs. All booked reserves are based upon annual evaluations by the IQREs. Annually, the Reserves Committee recommends the selection of IQREs to the Board of Directors for its approval.

The evaluations by the IQREs are conducted from the fundamental petrophysical, geological, engineering, financial and accounting data. Processes and procedures are in place to ensure that the IQREs are in receipt of all relevant information. Reserves are estimated based on production decline analysis, detailed reservoir modeling, volumetric calculations or a combination of these methods, in all cases having regard to economic considerations. In the case of producing reserves, the emphasis is on decline analysis where volumetric analysis is considered to limit forecasts to reasonable levels. Non-producing reserves are estimated by analogy to producing offsets, with consideration of volumetric estimates of in place quantities. All locations to which proved undeveloped reserves have been assigned are subject to a development plan adopted by Encana’s management.

Encana has a large inventory of internal growth opportunities and also continues to examine select acquisition opportunities to develop and expand its plays. The acquisition opportunities may include corporate or asset acquisitions. Encana may finance any such acquisitions with debt, equity, cash generated from operations, proceeds from asset divestitures or a combination of any of these sources.

The following table summarizes Encana’s net capital investment for 2015 and 2014.

Capital investment during 2015 reflected the Company’s disciplined capital spending which focused on investment in the Company’s core assets.

Divestiture proceeds during 2015 in the Canadian Operations of $959 million primarily included the sale of certain properties in Wheatland located in central and southern Alberta for approximately $467 million (C$557 million), after closing adjustments, certain natural gas gathering and compression assets in Montney located in northeastern British Columbia for approximately $355 million (C$450 million), after closing adjustments, and certain other properties that do not complement Encana’s existing portfolio of assets. Divestiture proceeds in the USA Operations of $896 million primarily included the sale of Haynesville properties located in northern Louisiana for approximately $769 million, after closing adjustments, and certain other properties that do not complement Encana’s existing portfolio of assets. For additional information regarding acquisitions and divestitures, see “Recent Developments” in this Annual Information Form.

All aspects of the oil and gas industry are highly competitive and Encana actively competes with other companies in the industry, particularly in the following areas:

·                    Exploration for and development of new sources of natural gas, oil and NGLs reserves;

·                    Reserves and property acquisitions;

·                    Transportation and marketing of natural gas, oil, NGLs and diluents;

·                    Access to services and equipment to carry out exploration, development and operating activities; and

·                    Attracting and retaining experienced industry personnel.

The oil and gas industry also competes with other industries focused on providing alternative forms of energy to consumers. Competitive forces can lead to cost increases or result in an oversupply of natural gas, oil or NGLs, each of which could have a negative impact on Encana’s financial results.

Encana’s operations are subject to laws and regulations concerning pollution, protection of the environment and the handling and transportation of hazardous materials. These laws and regulations generally require Encana to remove or remedy the effect of its activities on the environment at present and former operating sites, including dismantling production facilities and remediating damage caused by the use or release of specified substances.

The Corporate Responsibility, Environment, Health and Safety Committee of Encana’s Board of Directors reviews and recommends environmental policy to the Board of Directors for approval and oversees compliance with government laws and regulations. Monitoring and reporting programs for environmental, health and safety (“EH&S”) performance in day-to-day operations, as well as inspections and assessments, are designed to provide assurance that environmental and regulatory standards are met. Contingency plans are in place for a timely response to an environmental event and remediation/reclamation programs are in place and utilized to restore the environment.

Encana monitors developments in emerging climate change policy and legislation, and considers the associated costs of carbon emissions in its planning. The Corporate Responsibility, Environment, Health and Safety Committee of Encana’s Board of Directors reviews the impact of a variety of carbon constrained scenarios on Encana’s business plans with a current price range from approximately $20 to $125 per tonne of emissions, applied to a range of emissions coverage levels. Encana’s forecast cost of carbon emissions associated with British Columbia and Alberta regulations is not material to Encana. Encana may engage in consultations as appropriate and is actively managing the implementation of new climate related policy and regulations in order minimize the potential impact on its business. For additional information regarding environmental regulations, see “Risk Factors – The Company’s business is subject to environmental regulation in all jurisdiction in which it operates and any changes in such regulation could adversely affected its results of operations” in this Annual information Form.

Encana expects to incur abandonment and site reclamation costs as existing oil and gas properties are abandoned and reclaimed. In 2015, expenditures for normal compliance with environmental regulations as well as expenditures beyond normal compliance were not material. Encana’s current estimate of the total undiscounted future abandonment and reclamation costs to be incurred over the life of the reserves is approximately $2.6 billion. As at December 31, 2015, Encana has recorded an asset retirement obligation of $814 million.

Encana has a Corporate Responsibility Policy, an Environment Policy and a Health & Safety Policy (the “Policies”) that articulate Encana’s commitment to responsible development. The Policies apply to any activity undertaken by or on behalf of Encana, anywhere in the world, associated with the finding, development, production, transmission and storage of the Company’s products including decommissioning of facilities, marketing and other business and administrative functions. The Corporate Responsibility Policy articulates Encana’s commitment to conducting its business ethically, legally and in a manner that is fiscally, environmentally and socially responsible, while delivering strong financial performance. The Corporate Responsibility Policy has specific requirements in areas related to governance, people, environment, health and safety, engagement and community involvement.

With respect to Encana’s relationship with the communities in which it does business, the Corporate Responsibility Policy states that Encana will: strive to be a good neighbour by contributing to the well-being of the communities where it operates, recognizing their differing priorities and needs; engage, listen to and work with stakeholders in a timely, respectful and meaningful way; and align its community investments with its business strategy and seek to provide mutually beneficial relationships with the community and non-governmental organizations.

With respect to human rights, the Corporate Responsibility Policy states that Encana will abide by all applicable workplace, employment, privacy and human rights legislation. In addition, Encana will provide a respectful, inclusive workplace free from harassment, discrimination and intimidation.

The Environment Policy recognizes that responsible environmental practices contribute to long-term shareholder value creation and articulates Encana’s commitment to environmental stewardship. The Environment Policy outlines specific requirements in areas related to: compliance with environmental laws and regulations; environmental risk assessment and mitigation; air emissions management; water sourcing, handling and disposal; pollution prevention and waste minimization; and habitat, plant and wildlife disturbance.

The Health & Safety Policy recognizes that all occupational injuries and illnesses are preventable and states Encana’s goal of achieving a workplace free of recognized hazards, occupational injuries and illnesses. The Policy provides all personnel working on an Encana location with the authority and responsibility to stop work without repercussions when an unsafe situation is recognized or suspected.

The Policies and any revisions are approved by Encana’s Executive Leadership Team and its Board of Directors. Accountability for implementation of the Policies is at the operational level within Encana’s organizational structure. The operating teams have established processes to evaluate risks and programs have been implemented to minimize those risks. Coordination and oversight of the Policies resides with Encana’s Policy, Environment and Sustainability group.

Some of the steps that Encana has taken to embed the corporate responsibility approach throughout the organization include:

In addition, Encana’s Board of Directors approves such policies, and is advised of significant contraventions thereof, and receives updates on trends, issues or events which could have a significant impact on the Company.

At December 31, 2015, Encana employed 2,726 employees as set forth in the following table.

The Company also engages a number of contractors and service providers.

As at December 31, 2015, all of Encana’s reserves and production were located in North America, which limits Encana’s exposure to risks and uncertainties in countries considered politically and economically unstable. Any operations and related assets outside North America may be adversely affected by changes in governmental policy, social instability or other political or economic developments which are not within the control of Encana, including the expropriation of property, the cancellation or modification of contract rights and restrictions on repatriation of cash.

The following information is provided for each director and executive officer of Encana as at the date of this Annual Information Form.

(1)          Denotes the year each individual became a director of Encana.

(2)          Member of Audit Committee.

(3)          Member of Corporate Responsibility, Environment, Health and Safety Committee.

(4)          Member of Human Resources and Compensation Committee.

(5)          Member of Nominating and Corporate Governance Committee.

(6)          Member of Reserves Committee.

(7)          Ex officio non-voting member of all other committees. As an ex officio non-voting member, Mr. Woitas attends as his schedule permits and may vote when necessary to achieve a quorum.

(8)          As an officer of Encana and a non-independent director, Mr. Suttles is not a member of any Board Committees.

Encana does not have an Executive Committee of its Board of Directors.

At the date of this Annual Information Form, there are 11 directors of the Company. All of the current directors were elected at the last annual meeting of shareholders held on May 12, 2015. At the next annual meeting, shareholders will be asked to elect as directors each of the individuals listed in the above table. The Company’s mandatory retirement age restrictions, which have been established by the Board of Directors, stipulate that a director may not stand for re-election after reaching the age of 71.

During the last five years, all of the directors and executive officers have served in various capacities with Encana or its predecessor companies or have held the principal occupation indicated opposite their names except for the following:

Mr. Suttles joined Encana in June 2013. From March 2011 until June 2013, he was an independent businessman performing consulting services in the oil and gas industry and serving on the boards of Ceres, Inc. (a publicly traded energy crop company) and NEOS GeoSolutions (a privately held geosciences company). Mr. Suttles was Chief Operating Officer at BP Exploration & Production from January 2009 until March 2011.

Mr. Mayson is a director of Corex Resources Ltd. and Hawkwood Energy LLC, and serves on the Advisory Board for the private equity firm Azimuth Capital Management LLC (formerly Kern Partners). He previously served as a Director of Endurance Energy Ltd. from March 2012 to December 2015, and of Fairfield Energy Ltd. from July 2010 to June 2015. He has over 35 years of oil and gas industry experience, primarily with BP Exploration & Production where he held various senior roles including Chief Executive Officer of BP Russia, President BP Angola, Director of BP’s Exploration & Production Technology Group and headed up BP’s Global Subsurface Function.

Mr. McIntire has been Chief Executive Officer of TerraPower LLC (a privately held nuclear energy technology company) since August 2015. He previously served as President and Chief Executive Officer of CH2M HILL (a private consulting company) from January 2009 to January 2014, Chairman from 2010 through 2014, and served as the Executive Chairman of the Board of Directors of CH2M HILL from January 2014 to October 2014. Mr. McIntire was a director of BAE Systems (British Aerospace) PLC (a public global defence, aerospace and security company) from June 2011 to August 2013.

Ms. McKenzie has been a director of Inter Pipeline Ltd. (a public petroleum pipeline company) since August 2015, Bonavista Energy Corporation (a public oil and gas company) since May 2006 and PrairieSky Royalty Ltd. (a public oil and gas company) since December 2014, and two private oil and natural gas development companies (Spur Resources Ltd. and Endurance Energy Ltd.). Prior to that, Ms. McKenzie was Chief Financial Officer of Range Royalty Management Ltd. (a private oil and gas royalty company) from 2006 to December 2014 and Vice President, Finance and Chief Financial Officer of Profico Energy Management Ltd. (a private oil and gas royalty company) from 2000 to 2006.

Mr. Shaw has been a director of NuVista Energy Ltd. (a public oil and gas company) since August 2014, Manulife Bank of Canada (a private chartered bank) since February 2012, Manulife Trust Company (a private trust company) since February 2012, Ivey Canadian Exploration Ltd. (a private exploration company) since March 2010 and Lakeview Mortgage Funding Inc. (a private structured credit company) since January 2016. Mr. Shaw was a director of PrairieSky Royalty Ltd. from April 2014 until December 2014. Prior to that, Mr. Shaw was Chairman and Chief Executive Officer of CIBC World Markets Inc. from 2005 through 2008.