UPDATE 1-Encana to raise C$2.6 bln in sale of PrairieSky stake

CALGARY, Alberta, Sept 8 (Reuters) - Encana Corp, Canada's largest natural gas producer, will sell its remaining stake in PrairieSky Royalty Ltd, the company it spun out to investors in May, in a C$2.6 billion ($2.37 billion) deal as it continues to raise funds to increase oil production.