NuVista Energy Ltd. Announces Completion of Strategic Property Acquisitions
CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) - NuVista Energy Ltd. ("NuVista") (TSX:NVA) is pleased to announce that it has completed its previously announced acquisition of certain natural gas properties concentrated in West Central and Northwest Saskatchewan. The acquisition cost of approximately $82 million was funded with borrowings from NuVista's bank facilities. Concurrent with this acquisition, NuVista has increased its syndicated bank facility to $180 million.
This acquisition is a significant component of NuVista's 2006 capital expenditure budget of approximately $190 million. The acquisition is consistent with NuVista's strategy of acquiring low operating cost, operated properties with infrastructure, undeveloped land and significant lower-risk development potential. With this acquisition, NuVista establishes a new core area in West Central Saskatchewan and solidifies its dominant position in Northwest Saskatchewan. The acquisition includes natural gas production of 13.3 mmcf/d (2,200 boe/d), virtually all of which will be operated by NuVista with high working interests. The acquired assets include approximately 106,000 net acres of undeveloped land, 1,600 kilometers of 2D seismic and 80 square kilometers of 3D seismic. NuVista has currently identified over 40 drilling locations and 30 recompletions/workovers on these new assets. NuVista will conduct an active drilling program for the balance of this year to optimize and increase both oil and gas production and reserves from these assets.
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".
Corporate information provided herein contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by NuVista at the time of preparation, may be proven to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. There is no representation by NuVista that actual results achieved during the forecast period will be the same in whole or in part as those forecast.