CALGARY, ALBERTA--(Marketwired - May 20, 2014) - NuVista Energy Ltd. ("NuVista") (TSX:NVA) is pleased to announce that it has signed an agreement with SemCAMS ULC ("SemCAMS") for transportation and processing of 30 MMcf/d of raw gas from our condensate rich Montney play in the Wapiti area of Alberta. The agreement is underpinned by take-or-pay terms for a period of 10 years. To provide the capacity, SemCAMS will construct a 34 km x 8-inch diameter pipeline loop of their Northwest Wapiti Pipeline which will expand their existing pipeline capacity by 30 MMcf/d of raw gas. The existing Northwest Wapiti Pipeline and the loop which will be constructed both connect to NuVista's Elmworth (North) Development Block in which we have continued to experience expanding drilling success and running room. When added to our existing extended SemCAMS contract at Elmworth, this agreement will expand NuVista's total Elmworth block egress capacity to 47 MMcf/d of raw gas for 10 years. The existing and future expanded volumes flow to the SemCAMS operated Kaybob South 3 (K3) gas plant for processing. The pipeline is expected to be in service in mid 2015.
In order to deliver to this contract, NuVista will be constructing a compressor station in the Elmworth Development Block to augment the existing compression capacity to at least 47 MMcf/d. Long lead equipment for the 100% NuVista owned compressor has already been ordered and the development wells which will be required to be drilled to fill this capacity are already accounted for in our planned 2014 and 2015 planned capital spending programs.
NuVista is very pleased to mark yet another milestone towards the continued long term growth of our Montney play and the creation of significant shareholder value. With improving type curves, reducing costs, and exceptional economics, NuVista is confident to continue increasing our capital growth in the future while prudently maintaining balance sheet strength. Further details regarding this press release can be viewed in our corporate presentation which has been updated on our website www.nuvistaenergy.com as of May 20, 2014.
ADVISORY REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements, relating to the expansion of SemCAMS Northwest Wapiti Pipeline including the timing and benefits to be obtained by us therefrom; our plans to construct a compressor station in the Elmworth Development Block and the resulting anticipated increased production capacity and our plans to fill the increased capacity, our drilling plans and the results therefrom; our future strategy, plans, focus, and growth initiatives; and expectations of future results, including long-term profitable growth, type curves, costs and other economics.
By their nature, forward-looking statements are based upon certain assumptions and are subject to numerous risks and uncertainties, some of which are beyond NuVista's control, including receipt of the necessary approvals for the pipeline and compressor expansions and on the timeframes contemplated, the impact of general economic conditions, industry conditions, current and future commodity prices, currency and interest rates, anticipated production rates, borrowing, operating and other costs and funds from operations, the timing, allocation and amount of capital expenditures and the results therefrom, anticipated reserves and the imprecision of reserve estimates, the performance of existing wells, the success obtained in drilling new wells, the sufficiency of budgeted capital expenditures in carrying out planned activities, access to infrastructure and markets, competition from other industry participants, availability of qualified personnel or services and drilling and related equipment, stock market volatility, effects of regulation by governmental agencies including changes in environmental regulations, tax laws and royalties, the ability to access sufficient capital from internal sources and bank and equity markets; and including, without limitation, those risks considered under "Risk Factors" in our Annual Information Form. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. NuVista's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the forward-looking statements in this press release in order to provide readers with a more complete perspective on NuVista's future operations and such information may not be appropriate for other purposes. NuVista disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
NuVista is an independent Canadian oil and natural gas exploration, development and production company with its common shares trading on the Toronto Stock Exchange under the symbol "NVA".