The board of directors of Calgary-based EnCana Corp. approved a plan to split the company into two entities in an effort to reorganize the energy giant to better compete.

 

One company, to be called Integrated Oil Co., will develop EnCana’s current Canadian oilsands assets and refinery interests in the US. It will also deal with the company’s natural gas and oil productions in Alberta and Saskatchewan. The second company, with the working name GasCo, will become a “pure play natural gas company,” EnCana said.

 

Current EnCana shareholders will receive a share in each of the two companies. The plans to reorganize are expected to be fully complete by early 2009.